Inactive members on LLC - still need 1065 and K-1?

[daytrails]

Hello,

I started an LLC in early 2022. I only had about $250 in income and roughly $4,000 in startup expenses. 

When I created the LLC I added 3 family members to the business as members, who are completely inactive (they made no expenses or contributions to the business) and have all agreed to be removed. 

On my EIN assignment from the IRS, it says I need to file a 1065. Do I need to file a 1065 along with 3 Schedule K-1's that are essentially all 0's, with their ownership being 0%? 

[Vanessa A]

Yes, since you started it in 2022 with 3 members, you will need to file a 1065 and 4 K-1's (the 3 family members and yourself).  You will report the other members starting ownership beginning percentage and their ending ownership percentage.

Since you have gone from a multi member LLC to a single member LLC, you may want to contact a local Business Advisor on how to proceed as your tax reporting requirements are different when you change to the single member LLC.

[Anonymous_]

You also need a new EIN, @daytrails.

See https://www.irs.gov/businesses/small-businesses-self-employed/do-you-need-a-new-ein

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