If your business operates as an llc and makes no money or looses money do you still have to file taxes and will you end up owing or you have to file regardless and you can file your business expenses for a return?
If your LLC loses money, then the loss becomes a deduction on your personal 1040 tax return.
However, in order to take this deduction, you must file a return for your LLC–either a 1065 (for multi-member), or Schedule C for disregarded single member LLCs.
Failing to file a tax return for an LLC that loses money means you are leaving a tax deduction on the table, and thereby overpaying on your taxes (or getting a smaller refund).
My LLC is still not making profits and I will have to pay out of personal account. How to take care of that? Thanks.
What you should do is loan money to the LLC from your personal account and memorialize the loan with a promissory note.
Legalzoom sells promissory note forms for $14.95 (as of October, 2011). Go to “Personal Services” and “Other Legal Forms”
If income is under 2k do I need to pay taxes on that
We are a club, garden state ghost hunters LLC. We went LLC so as we can have small ghost tours to generate funds to help our club obtain equipment.
Neither the founders or members make any personal financial gain from these fund raisers.
But the GSGH LLC will get the profits after expenses which is usually only about 200 to 300 dollars, never exceeding over 2 K a year. We thought we should have an LLC so as we are legal to operate these fund raisers, but we have absolutely no idea how to file taxes and the like. Any and all help would be great.
Assuming your LLC is taxed as a partnership, you would first file a Form 1065, partnership return.
This would report the total profit/loss for your LLC. However, the LLC does not, itself, pay these taxes.
Instead, the LLC then issues a K-1 (part of Form 1065) to each member of the LLC, showing their portion of the LLC’s profits. A copy of the K-1 is also sent to the IRS (similar to how a copy of your W-2 and 1099 are sent to the IRS).
Each member will then use the K-1 to report his percentage of the LLC’s profit on his own 1040 tax return.
Note: Be sure that you are running ALL your LLC ghost hunting expenses through the company. That means automobile mileage for driving to the tour areas, advertising, food during the tour, any recording equipment used, etc. etc.
You might find that at the end of the day you don’t have a profit, and might even show a small loss (which is deductible against your regular income).
For under $50 you can pickup an older version Quickbooks on Ebay, and track your LLC expenses to ensure that you’re not paying a penny more in taxes than you should.
GA multi-member LLC made no profit.
I am a member of a GA 2 member LLC. We’ve learned we need to file one 1065 and each files a Schedule K along with that for the Federal. But, what about the state of GA? Do we have to file state taxes somewhere too? I can’t find anything on the site about it. If so, what forms?
The information from the K-1 will also flow through onto your personal state tax return. Most states follow the tax rules of the federal government (obviously with different rates), and even have similar formatting.
If you’re a do-it-yourselfer with your taxes, then use the same state tax forms you’ve always used–there are schedules for reporting K-1 income/losses.
Otherwise, I’d advise getting tax preparation software such as Turbotax. They have editions specifically for LLCs–both single and multi-member.
Does LLC have to file if just started
(Ft. Lauderdale, FL, USA)
My father started an LLC toward the end of 2008 with my mother and I listed as partners. The LLC only opened a bank account late Dec 08. There has been no work started and no expenses other than the fee for the formation of the LLC. Does the LLC have to file for 08 and fill out the K-1 forms for each of us or can we forgo filing for 2008 since no $ was exchanged.
Technically, you ought to file.
Entities are required to file tax returns, even if revenues are $0.
It’s a particularly good idea to file if the LLC has losses (expenses > revenue), because those LLC losses become deductions on your personal 1040 and save you taxes (or increase your refund if you have a day job from which taxes are withheld).
Return to Ask A Question About LLC Taxes.