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Should my business file Form 1065(Schedule K-1)?

Sterling Heights, MI |

My business LLC has two partners. The business was started last year and it did not make income. There is not much deductions to be claimed by Partners either. Should my business file Form 1065(Schedule K-1) and send copy of Schedule K-1 to the partners?

Attorney Answers 3

Posted

Yes. Since you have more than one member in your LLC, it will need to file a Form 1065, even if its a "zero return" with no income to report. Note that if there were only one member, it would be treated as a "disregarded entity," and not need to file a 1065 (instead reporting on the owner's schedule C of their 1040), however, this is not the case, so yes, you must file a Form 1065 for the LLC.

This advice is for INFORMATIONAL PURPOSES only and should not be relied upon as legal advice. No attorney-client relationship shall be formed as a result of the answer above.

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Posted

Yes. If you have not done so already, you can obtain a tax Id number for the LLC using form SS-4 from the IRS Forms and Publications website.

You haven't identified the other parties involved in this question so I cannot determine whether I may have a conflict in this matter. Should it turn out that I have an attorney-client relationship with any of the other parties, my response to this question will not prevent me from continuing to represent an existing client.

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Brook McCray Smith

Brook McCray Smith

Posted

Your LLC could elect to be taxes as a corporation, but most all businesses are better off being taxed as a partnership (Form 1065)

Posted

Yes, you are required to file a 1065. This will avoid a penalty and will start the statute of limitations on audit and collection.

Good luck.

Ron Cappuccio

If you do not like this answer or disagree, please look at one of the other answers provided. It is not necessary for you to try prove this answer is "wrong" or something with which you do not agree. This is a free service for you based on limited facts. Nevertheless, many times you need to consult an attorney with the details to get actual advice specific to your concerns. Do not put too many details in your questions or comments because this makes the information public and could hurt you. Government Regulations contained in IRS Circular 230 regulate written communications about Federal tax matters, including e-mail, between us and our clients. This is another attempt by the government to limit your rights and to extend the control of government over individuals and businesses. Nevertheless, such communications are either opinions or other written communications. This is not an opinion. It is other written communication and was not written to be relied upon, by itself, to avoid any tax penalties. In order to receive assurances of protection from tax penalties from a written communication, you should get an opinion letter. If you would like to discuss an opinion letter relating to any matter, please contact me and I will explain what is involved and what it will cost.

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