Opened a partnership LLC in 09/2019. We have not started operations yet, but have expenses. Does the LLC need to file taxes?

[DianeC958]

Yes, you do need to file taxes for the LLC.  Even if you did not have any expenses or income for the year you still need to file a tax return to avoid penalties for not filing a return.

Until you dissolve the business you need to file a tax return for the LLC each year.

You can file the form 1065 business return using TurboTax Business.  This program works on a PC.  

[Rick19744]

I disagree with @DianeC958 .

I have attached a link to the instructions.  Based on the limited facts, it appears that you have not started business yet.  As a result, it also appears you do not need to file a form 1065.

Read the instructions Who Must File on page 4.  Based on the limited facts, it appears you meet the qualification of no income and no expenses.

https://www.irs.gov/pub/irs-pdf/i1065.pdf

[Carl]

@Rick19744 according to the original post, the partnership does have expenses. So if those expenses were incurred in 2019 and qualify as deductions or credits, the 1065 needs to be filed.

@loquendo13 if your expenditures in 2019 was for business assets and/or inventory only, those don't count for 2019 if the business was not "open for business" on Dec 31 or before. If the business opens in 2020 you'll deal with those assets and the inventory on the 2020 return, regardless of what tax year you purchased the assets and/or inventory in.

[Rick19744]

@Carl I do see where the OP indicated that there were expenses, however, the initial post indicated that the business has not yet begun.  

So, to clarify my original response, if the business has not yet started, then those "expenses" are capitalized as either start-up or organizational costs AND are not deducted as ordinary business expenses.  Additionally, as noted by @Carl , if the "expenses were to purchase equipment or inventory, once again, those will not generate an ordinary business expense until the business has begun.

If those are the facts, then you do not have an initial year return to prepare for 2019.  

[Carl]

@Rick19744 the initial post is not all that clear. First sentence states, "Opened a partnership LLC in 09/2019." Then 2nd sentence is, "We have not started operations yet,"  Therefore it's really not clear if they were actually "open for business" in 2019 or not. Assuming they were not actually open in 2019, better clarity would be to indicate they "established" the partnership in 2019.

[loquendo13]

Thank you all for your replies. Here are some details that may help to clarify:

-The partnership LLC was legally established on 09/2019.

-The expenses incurred are the legal fees paid to establish the LLC and License Fees.

-The LLC has not started doing business yet.

[ThomasM125]

If the entity does not have assets, income or deductible expenses, then it would not be required to file a tax return. The expenses incurred thus far are either start up expenses or organization costs, neither of which are deductible in the current year. So, it would seem a partnership return is not required for this calendar year.