Started LLC with only expenses

[eric-haslinger]

I started a single-member LLC in 2016 and incurred only startup expenses, no income. I filed jointly with my wife. Those qualifying expenses carry over to 2017, as I am now "open for business," and I should not need to amend our 2016 return...correct?

[Phillip1 · Accepted solution]

If the business was not operating in 2016, you will hold the start-up expenses until 2017 (the first year that your business was open). On the 2017 tax return, you can deduct up to 5,000 dollars of the start-up expenses and you can amortize the excess that greater than 5,000 dollars over 15 years.