A loan is a balance sheet item, not an income statement item. A loan is not an expense, and does not impact the net income/ loss. Only interest income hits the income statement/ 1065 income reporting.
Is the LLC required to complete the balance sheet (1065, Schedule L)? You are generally not required to do so if receipts under $250k and assets under $1 million.
If so, a loan reduces the cash on hand and increases Notes/ Loans Receivable. You may also need to accrue interest income and a receivable for that.
