If your Gross Income was less than $58,000 you are qualified for Free Federal Tax Filing

File your Federal Taxes for Free with TurboTax Federal FREE Edition

Go Back   Tax Forum - Payroll, Accounting and Tax Help Forum > Individual Tax Forums > Business Income Tax Forum

Sponsored Links

Post New Thread  Reply
 
Thread Tools Display Modes

Sponsored Links

Old 04-14-2012, 10:50 AM   #1
Ren
Junior Member
 
Join Date: Jun 2010
Posts: 9
Rep Power: 0Ren is on a distinguished road
Read. Ask. Learn.
How to zero out a business LLC on a 1065 form?

Registered users do not see advertisement
Hello guys, here is the form I need to compelte for my nevada business that had no expenses or costs and made no profit or revenue during the 2011 year.

The form is the 1065: http://www.irs.gov/pub/irs-pdf/f1065.pdf
^^ Atleast i think it is ^^

1) My question is, how do i zero this thing out? For the part where it says 1A all the way to 22 do I just fill in 0 on everything?

2) Do I need to fill out the 1065 Schedule K in the PDF link above?

3) Do I need to fill out the 1065 Schedule L, M-1, and M-2?

4) Better yet - which parts do I fill out and which are not needed? There is absolutely 0 costs, 0 expenses, 0 money made, 0 profit, 0 revenue, 0 everything!

The type of entity is a: "Disregarded Entity - Single Member LLC" and I do have an EIN but no bank account for this business. Located in Nevada. i appreciate all the help
Ren is offline   Reply With Quote
Sponsored Links

Old 04-17-2012, 04:38 AM   #2
Juno
Senior Member
 
Join Date: Oct 2012
Posts: 2,620
Rep Power: 0Juno is on a distinguished road
Read. Ask. Learn.
1) My question is, how do i zero this thing out? For the part where it says 1A all the way to 22 do I just fill in 0 on everything?---> You do not need to file a 1065 if you had no income nor expenses for a given tax year. The problem you may run into is that the IRS does not know that you had no income nor expenses and may be looking for a return, down the road. It may be better to simply file the form and report no income and no expenses. So, you generally need to file the partnership return whether there's any income to report or not. Either extend the 1065 or file it by 04/17 with zero's. The question you need to answer is Are there start-up costs or organization costs?" If yes, they are costs associated with setting up the company (legal and professional costs, equipment and furnishings, acquiring and build-out of your office/shop). If these are start-up & organization costs, then, they are capital costs and can be amortized/depreciated.LLCs that you designate as a partnership for tax purposes must provide the IRS with an informational tax return on Form 1065 and a Sch K-1 attachment for each LLC member. This filing requirement remains effective for any tax year the LLC has no business activity or income. When you prepare the return, you can simply enter zeroes for revenue and expenses
2) Do I need to fill out the 1065 Schedule K in the PDF link above?---->I guess so; Sch K is the income summary/reconciliation for the 1065. The K-1(s) are a subset of the K. Even if there is no income you'll fill in the K and K-1 with zeros. you need to complete a 1065 as a zero return, marking it final( if it is final return). Assuming all members are aware that it is zero, you do not necessary to issue K-1's as there is nothing to allocate to your partners(However, I guess the partners would have that for their records). You don't need to show that you did not have any activity, that is apparent from the zeros.
3) Do I need to fill out the 1065 Schedule L, M-1, and M-2?---->You need to file Sch , Sch M-1/ Sch M-2. Remember that almost all partnerships must file a Form 1065 unless they make no profits and have no expenditures that must be reported for federal income tax purposes. You need to gather your balance sheets for the beginning and the end of the year. Make sure your books are correct and all amounts balance properly before filling out Sch L. Remember that the information you fill out on your tax form must match the books and records of the partnership. Generally speaking, the balance sheet would be zero'd out, the M-1/ M-2 would be zero'd out as there would be NO reportable balance in this accounts; no income, no deductions, cash distributions to each partner to zero out the balance sheet on Sch L/ Sch M-1/Sch M-2.
Juno is offline   Reply With Quote
Disclaimer
While you may find opinions of forum members useful, they don't take the place of professional legal advice. TaxForum.us suggests that you find professional legal help for all your legal questions since every situation is different and depends on your state tax laws.

The information presented on this site comes without any warranty of correctness and, therefore, should not to be relied upon as professional advice. No attorney client relationship is created through use of this site.
Post New Thread  Reply


Special Offers
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT. The time now is 12:20 PM.


Join TaxForum.us
tax calculator

Free Tax Help® Version 3.8.4
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.




Approved TurboTax Affiliate Site
TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
vRewrite 1.5 beta SEOed URLs completed by Tech Help Forum and Chalo Na.