My wife and I opened an LLC company last year, with her owning 95% and myself owning 5%. We did not generate any income for the year 2023. Do I use TurboTax Home and Business or TurboTax Business to file taxes? Additionally, do I need to file taxes for the LLC if there is no income, considering we did incur some expenses? If I choose either of these products, can my wife and I file our personal taxes using the same software, or do we need to purchase TurboTax Deluxe for our personal tax filings? We want to file our taxes on our own without the TurboTax-assisted products.
Yes, you do need to report the LLC activity even if you had no income for the year. How you file depends on where you live.
If you live in a community property state (AZ, CA, ID, LA, NV, NM, TX, WA, & WI), you may each file Schedule C/E on your joint return to report your respective shares of the business activity.
However, if you do not live in a community property state, the LLC must file a separate business return (Form 1065 Partnership, available in TurboTax Business). You would then include the information from two Schedules K-1 on your joint return, which can be prepared using any TurboTax for Desktop product (Deluxe and above).
Read the full text at Election for Married Couples Unincorporated Businesses for options available to you. Also Rev. Proc. 2002-69, 2002-2 C.B. 831 for IRS clarification of community property states.