Started an LLC but didn't launch operations. Can I deduct expenses and do I file a tax return?

[Traviso777]

My business partner and I started an LLC in 2023 but did not launch business operations due to a change of plans.  We had expenses that were intended for the startup.  Can these expenses be deducted?  Do we need to file a tax return?

[Carl]

Assuming this is a multi-member LLC, you do not need to file a 1065 return until the first tax year you are "OPEN FOR BUSINESS".  Since you were not open in 2023, no tax return is required. Any business expenses incurred in 2023 are start up expenses and are claimed as such on the tax return for the first tax year you are open for business.