My situation is similar. In 2021, I formed a LLC with multi members for running a restaurant. We did pay 100K for remodel, lease deposit, company registration, and so forth. However, the restaurant does not open for business yet. I have some questions below:
1. Am I required to file form 1065 even no income generated but had start-up costs in 2021?
2. If yes, what date should I input the business start day in the tax return? Should I put the date of LLC registration in the state?
3. Should I treat all 100K we paid in 2021 as start-up cost? Prior to business begins, is all spending a start-up cost?
4. Since the business does not officially start in 2021, should I claim $5000 start-up cost as expense, and amortize the rest 95K as depreciation in 2021 tax return? Or just file a zero 1065 form and claim the start-up cost (expense and amortization) until the business begins?
Your response will be greatly appreciated!
