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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29970
Experience:  Taxes, Immigration, Labor Relations
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My husband and I, along with another couple started an LLC

Customer Question

My husband and I, along with another couple started an LLC for investment purposes in October of 2014. We only had expenses and no income of any kind during 2014. Do I still need to file Form 1065 and Fill out the K-1 schedules? We will have income for 2015.
Submitted: 2 years ago.
Category: Tax
Expert:  Lev replied 2 years ago.

Yes - based on your information - filing is required.

Unless you elected differently - the LLC with several members is classified as a partnership.
See instructions - page 3

Who Must File -- Domestic Partnerships --
Except as provided below, every domestic partnership must file Form 1065, unless it neither receives income nor incurs any expenditures treated as deductions or credits for federal income tax purposes.

Thus because your partnership had deductible expenses - filing is required.

If these are deductible expenses (not capital expenses) - which generate loss - then - you woudl need to have K1s to pass these losses or deductions to partners.

If these are capital expenses which are not immediately deducted - no K1 needed.

Customer: replied 2 years ago.
Would this hold true if the only expenses were and charge for checks of $24.95 and a wire transfer charge of $30?
Expert:  Lev replied 2 years ago.

Instructions do not set a threshold amount fro income or expenditures...

They also do not have exclusion for certain expenditures as you mentions.
Some time ago - filing requirements fro LLCs were regardless of income or expenses... so when the IRS allowed not to file for some LLCs - that was a relief.

As a practical matter - you may consider as expenses paid by you personally and not to file - it is very unlikely that the IRS woudl ever question your position. In this case - you woudl not be able to deduct these expenses.
But formally - filing is required.