- January 16, 2018 at 6:14 pm #149580
Me and my brother founed an LLC and If i’m not mistaken a domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 and affirmatively elects to be treated as a corporation.
Our company started operating only in september 2017 and we had only expenses and ALMOST no profit (literally less then 10$).So my question is, do we have to file a federal tax return for last year, even if we basically had no profit (as I said, only one transaction for less then 10$). I mean, that’s a lot of paper work for such little activity. I hope not, but if so, which form do we need to file? is it 1065 with K1?January 16, 2018 at 6:20 pm #149850
Hi Miha, congrats on your new business! You are absolutely correct that your business is considered a partnership since you did not elect to be treated as a Corporation. While I’m not a tax expert, I’m pretty sure that you need to file a federal tax return for the partnership. Form 1065 and Schedule K-1 are the correct forms. However, I recommend that you contact a tax professional just to be sure that you are required to file.
If you plan to complete the return yourself, check out the link below which is a guide to completing Form 1065: https://fitsmallbusiness.com/form-1065-us-return-of-partnership-income/
Best wishes for a prosperous 2018,