Massachusetts State rules on LLC Partnerships

[GatesAirFAX20]

Hello,

I am still a bit confused after reading many articles and explanations of the tax laws in Massachusetts.

I just started up in 2023 an LLC as a partnership with a second owner.  Our company had a great year, but technically we did not declare any distributions from the profits-- these earnings are being retained for future investment in the LLC in agreement with my partner. 

This is a tiny business that involves no ownership of property (real estate, stocks or vehicles) and generates less than $50K per year in gross revenues. 

I have filed the partnership election form with Massachusetts, indicating we are operating as a pass-through entity.

Do I still have to file a state tax return for this LLC to report that we made nothing, depreciated nothing, amortized nothing, and retained the earnings with no distributions?  It's still not clear to me why this should be done when there is literally nothing to report.  Of course, any guaranteed payments we received will be reported on our individual K1's  for federal and state tax forms to capture the income and self-employment tax that way. 

Thank you in advance Turbomunity for your experienced answers to this completely newb question!

ML

[JohnB5677]

Yes you should include this on both your Federal and State income tax.

• A  pass-through entity means the income from the company passes through to the owners' personal income. 
• There may or may not be a separate tax form required for the partnerships, but the state does require an annual report to be filed.
• I suggest you contact a local professional to determine if you do require a tax return, need to distribute the income, and how to file the Massachusetts annual report.