Single member LLC registered in 2023 with 0 income

praxisknight · ‎March 19, 2024

I registered a single member LLC in 2023, but I am still figuring out what type of business to start. Do I need to report this on my 2023 taxes? I have 0 income from it and the only expense I guess was the state filing fee (is this a valid expense). Thank you.

MinhT1 · ‎March 19, 2024

Your single member LLC is a disregarded entity for tax purposes and you report its income and expenses on your personal tax return.

Please read this IRS document.

For 2023, your LLC hasn't been active as you're still figuring out the type of business to start. It had no income. The state filing fee is considered an organizational cost which can only be deducted in the year in which the business begins.

Please read this IRS document.

Therefore, there's nothing to report on the LLC in 2023.

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View solution in original post

MinhT1 · ‎March 19, 2024

Your single member LLC is a disregarded entity for tax purposes and you report its income and expenses on your personal tax return.

Please read this IRS document.

For 2023, your LLC hasn't been active as you're still figuring out the type of business to start. It had no income. The state filing fee is considered an organizational cost which can only be deducted in the year in which the business begins.

Please read this IRS document.

Therefore, there's nothing to report on the LLC in 2023.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Single member LLC registered in 2023 with 0 income