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LLC (Sole Proprietorship) formed 2006, no business transpired

 

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LLC (Sole Proprietorship) formed 2006, no business transpired gg.5.fissionhead 02-23-2007
Posted by gg.5.fissionhead on February 23, 2007, 6:50 am
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Last year I formed a LLC and got a EIN. It is, for tax
purposes, a sole proprietorship. No business occurred in
2006. Well, I started a bank account, but I haven't
made/spent any money or claimed any deductions.

Do I need to list the business anywhere on my taxes? I've
read the irs faq (http://www.irs.gov/faqs/faq-kw125.html)
but it doesn't seem to address my question. So, do I need
to list the business name/EIN/ acct. info anywhere on my
taxes, and do I need to fill out a 1040C or 1040CEZ?

Thanks!

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Posted by Shyster1040 on February 25, 2007, 12:01 am
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No. Since you haven't started to carry on any business
activity, you don't have a trade or business yet, so you
have nothing to report on your tax return.

If you opened the bank account in the LLC's name using the
LLC's EIN, you should have received a Form 1099 if the
account earned any interest from that account. In that case,
the interest income would be reported on Sch. A, with a
notation that the interest was received by you as the sole
member of __________, LLC, a disregarded entity, EIN
xx-xxxxxxx.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Kreig Mitchell on February 25, 2007, 5:00 am
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gg.5.fissionh...@xoxy.net wrote:

> Last year I formed a LLC and got a EIN. It is, for tax
> purposes, a sole proprietorship. No business occurred in
> 2006. Well, I started a bank account, but I haven't
> made/spent any money or claimed any deductions.
>
> Do I need to list the business anywhere on my taxes? I've
> read the irs faq (http://www.irs.gov/faqs/faq-kw125.html)
> but it doesn't seem to address my question. So, do I need
> to list the business name/EIN/ acct. info anywhere on my
> taxes, and do I need to fill out a 1040C or 1040CEZ?

No, you do not have to list the entity on your tax return;
however, you may want to think about your
organizational/start up expenses.

Kreig Mitchell
http://www.irstaxtrouble.com
http://www.irstaxtrouble.com/blog.htm

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by shedges on February 25, 2007, 5:00 am
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No, you need not file a Sch C if you had no LLC income and
no LLC expenses. Even if you had interest income on the bank
account, interest income would be reported on Sch B, not Sch
C. However, the 3 year statute of limitations does not start
running, unless you file a Form 1040 of some kind. But who
cares, if you have no income? If you do file a Form 1040 the
3 years start at the later of April 15th or the filing date.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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