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I created an LLC in 2014 with a friend. We elected to treat…

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I created an LLC...

I created an LLC in 2014 with a friend. We elected to treat the llc as Schedule C income. We did not produce any income so we each had a small loss to report. We did not file a form 1065. Are we subject to a penalty for failure to file a 1065?

Submitted: 4 months ago.Category: Tax
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Answered in 8 minutes by:
12/18/2017
Tax Professional: Fred Rook, Certified Public Accountant (CPA) replied 4 months ago
Fred Rook
Fred Rook, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 125
Experience: 20+ years as a Certified Public Accountant, including 19 years working in public accounting firms with extensive tax, audit, write-up and consulting experience.
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Hello. My name is ***** ***** I can help you. If there are more than 2 members, then you have to file a 1065, unless there is no business activity. It sounds like you had minimal expenses relating to the business. I had a similar scenario with another client, where we advised them if the expenses are minimal, then keep the expenses on the schedule C this year, taking the position that the LLC iteslf had no activity. Going forward, I would form the LLC, especially if you anticipate ramped-up activity. Please let me know if you have any additional questions for me. Thanks!

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Fred Rook
Fred Rook, Certified Public Accountant (CPA)
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Satisfied Customers: 125
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Experience: 20+ years as a Certified Public Accountant, including 19 years working in public accounting firms with extensive tax, audit, write-up and consulting experience.

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