Tax Loss LLC Filing

[Reese Thompson]

I'm preparing to file my taxes for my LLC. Since we didn't have our rental units yet for last year, the only cash event that occurred was the cost for forming the LLC. Total amount was less than $500, so I'm wondering if someone could point me in the right direction for how to handle this?

Thanks!

[Jason Krejci]

Hey Reese, I'm not an accountant but I do work for the IRS and deal mainly with business compliance issues. Your federal filing requirement depends on if you made an entity classification election on form 8832 or not. For example you could elect to be treated as an S corporation for tax purposes on form 8832. If you made no election you are subject to the default classification. A single member LLC defaults to a disregarded entity which means you include your LLC income and losses directly on your personal tax return. A multi member LLC defaults to a partnership classification meaning you would need to file a 1065 which is a non-taxable return but subject to a penalty if not filed timely. Hope this helps.

Jason