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Level 2
posted Apr 20, 2022 6:20:14 PM

Terminate Multi-Member LLC - can both initial return and final return be checked at the same time?

Scenario:

 

Multi-member LLC formed in Oregon in 2018 with EIN but not open for business.

 

Looking to dissolve LLC, would I need to file form 1065 at all? If so, would I check both the initial return and the final return at the same time? Or, just the final return box?

 

Thank you.

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1 Best answer
Level 15
Apr 20, 2022 7:04:18 PM

If that is the extent of the expenses (and there is no income), then read the following line from the link I posted:

 

.......neither receives income nor incurs any expenditures treated as deductions or credits for federal income tax purposes.

 

Thus, if you have no intention of deducting the expenses incurred, you do not need to file a return.

5 Replies
Level 15
Apr 20, 2022 6:24:13 PM

Did the LLC incur any expenses or receive any income? If not, a return is not required.


See https://www.irs.gov/instructions/i1065#en_US_2021_publink11392vd0e555

Level 2
Apr 20, 2022 6:34:59 PM

Yes there were the expenses in terms of maintaining the state annual filling/register agent fees.

Level 15
Apr 20, 2022 7:04:18 PM

If that is the extent of the expenses (and there is no income), then read the following line from the link I posted:

 

.......neither receives income nor incurs any expenditures treated as deductions or credits for federal income tax purposes.

 

Thus, if you have no intention of deducting the expenses incurred, you do not need to file a return.

Level 2
Apr 21, 2022 8:02:31 PM

To circle back to the original question, just in case there is a need to file during "winding down" which might generate income:

 

Can both the initial return and final return be checked at the same time?

Level 15
Apr 22, 2022 6:21:08 AM

Can both the initial return and final return be checked at the same time?   YES