1120S K-1 LLC – need to file ?
Created LLC in 2014, real estate investing (flipping never worked for me, not handy). Bought a lot of training, courses, software, but havn made any money yet. Each year since, about $1500 loss on schedule C. Changed states from original utah to Colorado for LLC. Same EIN since then. Registered as a Foreign Entity in CO. I have a C-Corp,too, but have never filed anything with that, either..
Do i need to file 1120, k-1 ? For previous years? Still involved in REI without spending too much money.
Yes you need to file. Even-though your business is not profitable, you still must file with the IRS. Please contact a Certified Public Accountant (CPA) in your area for more information. You could be potentially racking up non filing penalties.
Hi, Ted –
Deborah has provided good advice, especially the part about visiting a CPA. I just want to add that we stay away from providing tax advice because the answers usually depend on a lot of factors. For instance, if you’re a single-member LLC, then you may be considered a disregarded entity that doesn’t need a separate tax filing. If you have multiple members, you most likely need to file. Another factor is whether they’ve been filing in previous years. If you typically file, then you need to file even if there’s no activity. If you’re going to quit filing, then you may need to have a final filing for the last year you intend to file. Again, there are a lot of factors at play, so you should speak with an accountant.
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