We recently set up an LLC , owned by myself and my spouse. Treating it as disregarded for tax purposes, so not generating a K-1.
How do I deduct organization expenses (mainly legal) on my personal TurboTax return?
Thanks in advance
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wrong, under IRS rules a multi-owner LLC must file a partnership return (or S-corp if that was elected). only single-member LLC's are disregarded entities and can avoid filing a separate tax return. non-LLC's where owners are H & W also don't have to file a partnership return.
don't ignore this. the penalties for failure to file can hit almost $5,000
from IRS 1065 instructions
Entities formed as LLCs that are classified as partnerships for federal income tax purposes have the same filing requirements as domestic partnerships
We live in WA, a community property state. The IRS allows LLC's co-owned by spouses who live in a community property state to be a disregarded entity.
So, I should more accurately phrase my question as "How do I deduct organizational expenses for a disregarded SMLLC on TT?"
Thanks
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