Filing taxes for LLC as a new franchise business

CanIDeductThat · ‎February 17, 2025

In early 2024, I started a new LLC business and paid a franchise fee to be a franchisee. I have not opened the business as of yet so we have no income for 2024. The only expenses I have to date are:

1. Business Registration Fee

2. Franchise Fee

I understand that I can't take Startup Expense Deduction until I start operating the business and generating revenue. With all of this, do I actual file a tax return (Form 1065) for the LLC in 2024?

CanIDeductThat

Also this LLC has 2 members, me and my spouse.

PatriciaV

A multi-member LLC treated as a partnership must file Form 1065 even if there is no activity. You will need TurboTax Business to file this return.

Note that if you live in a community property state (AZ, CA, ID, LA, NV, NM, TX, WA, & WI), you may each file Schedule C on your joint return to report your respective shares of the business activity. In this case, you would not need to include Schedules C if there is no business activity.

Additional Information: IRS Election for Married Couples Unincorporated Businesses

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