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Old 04-14-2012, 10:50 AM   #1
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How to zero out a business LLC on a 1065 form?

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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
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Old 04-17-2012, 04:38 AM   #2
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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.
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