As a first-time LLC Member, I am having trouble with my 1065 and need some guidance. First off, we are an AD military couple so we are residents of a different state than where we are stationed. I have already filed our 21 returns and received our refunds, although it was done incorrectly.
I started on TurboTax online and it didn't let me know that it filed us as a sole proprietor and not 1065 for our LLC spousal partnership. So I purchased the TurboTax Business program and need to amend (or just resubmit prior to 3/15 if I can?) I believe. Basically, do I enter my information in the TT Business program and the TT Self Employed and how should it be mapped out?
Context: I started bookkeeping, campaign finance compliance, and other freelance administrative projects while I was finishing an HR program in Jan2021. My intention was to start my own LLC once I knew it was viable as a virtual practice. From Jan-Oct I used my savings and outfitted a new office, traveled to our state of residence, Oregon, to find an in-state registered agent and meet with potential clients and investors. This went really well and I secured contracts for the 2022 campaign season so in October I registered us as an LLC partnership in OR, our state of residence. Here is a breakdown of income and expenditures:
Income: Very little as I was working to set up the LLC
Expenses: Fair amount of expenses, all paid out of pocket with no plan to reimburse ourselves as we expected an NOL.
Partnership agreement: We agreed to and stated to pass through all our expenses as UPE until we get a better footing.
Questions-
- When should our start date be? -When I registered us in OCT or when I started working to set up our LLC Jan?
- If OCT is the LLC start date, then all the asset expenditures are Equity during startup for LLC and operating expenses during start-up are UPE or Expenses for Freelance self-employment?
- If Jan is the LLC start-up date, Do I pass through the operating expense for the year as UPE, and Fixed assets as Equity? Or some other situation?
- Lastly, since we have an NOL for 2021 we do not seem to be able to get the home Office Deduction. Does this seem correct, even though our Partnership Agreement is that we would personally cover all business expenses including the Business portion of the rent, utilities, etc.?
This doesn't seem correct as we converted what was our game room into an office used only for this work, upgraded our internet and phone plans, purchased all new furniture and other office expenses. I spent most of my time in 2021 in my new home office making progress on starting this LLC and getting investors and contracts for 2022. I did make some income but was mostly focused on prepping for this year.
Any guidance would be appreciated!
