In Arizona a multi member LLC has losses-is there anything to file?

by Helen
(Phoenix AZ USA)

If an Arizona LLC has losses, are there any legal forms to file?

Answer

Only if you want to reduce your taxes :)

This applies to all LLCs, not just Arizona LLCs.

Remember, you file tax returns not only to pay taxes, but also to take tax deductions.

In the situation of a multi-member LLC, you need to file a Form 1065, partnership return.

Because your LLC is showing a loss, each member will receive a Schedule K-1, which will have a negative number.

This "negative number" (loss), will be a deduction on each of the members' Form 1040s (only your share is a deduction--so if there is a $10,000 and two members, you don't each take a $10,000 loss, but allocate it amongst yourselves).

I suggest that you use either a trusted accountant or tax preparation software designed for small businesses.

TurboTax Home & Business is a good resource for filing your multi-member LLC tax return and integrating the deductions into your personal 1040.

So yes, you need to file a return and save on your personal taxes.