topic LLC Expense -No Income in Business & farm

LLC Expense -No Income

CaBrandy — Sat, 08 Feb 2020 17:23:41 GMT

I have two LLC's with EIN's. I have no income but less than $1000 in expenses for 2019. I have been waiting to close on a business so do I need to file a K-1 for each LLC?

Re: LLC Expense -No Income

RobertG — Sat, 08 Feb 2020 17:44:14 GMT

Yes, you should file returns and issue K-1s.

Assuming you have been filing partnership or S-Corporation returns for each LLC, you should file a final return in the year the business ceased to operate. That way you can report the remaining expenses and officially close the business.

Filing a return starts the running of the Statute of Limitations and limits the time that the IRS can begin an audit.

Re: LLC Expense -No Income

Rick19744 — Sat, 08 Feb 2020 18:34:11 GMT

Actually we need some additional facts / clarification:

The LLC's. Are these single member LLC's or multi-member LLC's?
What does "waiting to close on a business" mean?

Re: LLC Expense -No Income

Anonymous — Sat, 08 Feb 2020 18:40:16 GMT

has the LLC elected to be taxed as an S-Corporation?

Re: LLC Expense -No Income

CaBrandy — Sat, 08 Feb 2020 18:57:34 GMT

Yes, one LLC has S-Corporation status, which is the operating company. The other LLC is sole member status for holding business assets rented to the S-Corporate LLC.

Re: LLC Expense -No Income

CaBrandy — Sat, 08 Feb 2020 19:00:04 GMT

Both LLC's are single member status. The LLC were established for the purchase of a restaurant which was still in process to close at year end.

Re: LLC Expense -No Income

Rick19744 — Sun, 09 Feb 2020 01:00:00 GMT

Just for final clarification.

One single member LLC has elected to be taxed as an S corporation
What is the status of the other single member LLC?
- Who owns this single member LLC?
- Is this owned by an individual
- Or is it owned by the S corporation?