When to start filing taxes on my LLC?

[trac3yyg]

Greetings Experts :-),

I'm currently in the beginning stages of starting a LLC.  The LLC was registered in the state of GA as a Multi-member LLC on October 31,2022.  We're currently in the process on getting all the licenses, certifications, and equipment required to start providing services. It's likely we will not be ready to provide serives until next year.  Do we still file taxes on the LLC even if we haven't started providing services or should we file when the business is officially open for services?   We only have Organizational and Startup Costs for this year 2022 (i.e. the business is not "open"), Should we deduct anything  during tax season since we was not open in 2022? I'm assuming we shouldn't even file taxes at all at this time since we not technically providing services at this time  (the entity is an LLC taxed as a partnership). I'm getting a little confused after reading a few articles on the Internet, some say that the business start date is when we registered it the the state but others say when you're offically open for business.  

Thanks in advance for your time and assitance. I look forward to your response. 

[JBedford · Accepted solution]

Hi, @trac3yyg ! Based on the information you've provided, you could file a partnership return for the business for tax year 2022. This is because you had deductible expenses during that year and if you incurred expenses, then you are already "in business" as far as the IRS is concerned. You can only deduct expenses in the year they were paid (what's called "cash basis accounting", or incurred (what's called "accrual basis accounting"). In your case, it sounds like this would be 2022 regardless of which accounting method you are using. (Most small businesses use the cash basis, since it's the simplest, and generally suits the needs of a small business just fine.) Hope this helps!