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LLC started in Nov 2006, do I have to file taxes now?

    • 14 posts
    May 20, 2007 3:07 PM EDT
    If my articles of organization was created on Nov 6 2006, do I have to file fed income/state taxes for 2006? I got my FEIN in 2007.
    • 14 posts
    May 20, 2007 4:04 PM EDT
    It was an LLC, disregarded. I dont know about the fiscal year. I think it may have been the normal jan-dec year.
    • 14 posts
    May 20, 2007 4:24 PM EDT
    Anyone know?
    • 14 posts
    May 20, 2007 4:35 PM EDT
    Yeah, it ends on dec 31
    • 14 posts
    May 20, 2007 5:20 PM EDT
    Thats not really the question... My question is:

    If my LLC was created (articles of organization) on nov 6 2006... do I have to file taxes for 2006 even if I didnt sale anything....

    Oh, and if I do... I am late... any idea on how much the late fee is? Also, I heard that if you have deductions, you dont have to pay a late fee, is that true?
    • 14 posts
    May 20, 2007 5:33 PM EDT
    BTW, I didnt work in 06 so I didnt file a 1040
    • 14 posts
    May 20, 2007 7:24 PM EDT
    Single member LLCs that are wholly owned by a
    foreign corporation or individual would be classified
    by default as a disregarded business entity and
    would be invisible for U.S. federal tax purposes.
    Consequently, the foreign corporation or individual
    would not have to file a tax return if the LLC
    receives no passive income from U.S. sources
    and/or receives no income effectively connected to
    a trade or business in the U.S
    • 14 posts
    May 20, 2007 7:24 PM EDT
    I found that on the net.... is that true?
    • 14 posts
    May 20, 2007 7:27 PM EDT
    Then again, it says foreign corporation or individual.... does that mean foreign individual or just a US individual?
    • 14 posts
    May 20, 2007 8:41 PM EDT
    If your sole proprietorship business is inactive during the full year, it is not necessary to file a Form 1040, Schedule C (PDF), Profit or Loss from Business, for that year.


    found that at irs site.... I guess since my LLC is taxed as a sole prop.. then I don`t
    • 14 posts
    May 20, 2007 8:54 PM EDT
    right?
    • 59 posts
    May 20, 2007 5:12 PM EDT
    If my articles of organization was created on Nov 6 2006, do I have to file fed income/state taxes for 2006? I got my FEIN in 2007.


    If you`re a disregarded entity then you report your LLC activities on Schedule C of Form 1040, which was due April 17, 2007.  If you extended your individual tax returns then it is not late.  If you already filed your tax return, then you should amend it to include the activities of your LLC.

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    Gina L. Gwozdz, CPA
    http://GLGcpa.com
    http://TaxTreasures.com

    • 15 posts
    May 20, 2007 6:01 PM EDT

    Since, it sounds like you are a Single Member LLC and your business was formed on November 6, 2006, you would file a Schedule C attached to your Federal 1040. On this schedule C, you would show business activity for the period between November 6 - December 31st. Although, you could have had start-up and organizational expenses which would have occured prior to the November 6th LLC formation date. You are able to expense the first $5,000 of start-up and organization expenses. However, in your case it looks like you missed the deadline to elect to expense the first $5,000. In that case, any start-up or organizational expenses you incurred will have to be amortized/expensed over a period of not less than 15 years. You must have had some expenses related to the formation of this new venture. Correct?

    Additionally, if you are not required to file a Federal 1040 tax return according to the IRS rules and regulations regarding "Who Must File a Return" , then there is nothing you need to do. If you had formed a corporation or partnership, there would be Federal and State tax filings for these business entities regardless of whether or not you had any sales.

    Have I fully answered your questions?

     

     

     

     

    • 15 posts
    May 21, 2007 3:51 AM EDT

    Correct your LLC is going to be taxed as a sole proprietorship if it is a Single Member LLC - which you have indicated. This is the IRS default classification for Single Member LLC`s - although you could have elected to be taxed as a coroporation. You would have had to have filled out a special election to do that. Your post does not indicate that you elected to change your entity status for tax purposes.

    .

     

    • 747 posts
    May 20, 2007 3:56 PM EDT

    What type of entity was created? What is the fiscal year for the entity?

    A corporate federal income tax return is generally due by the 15th of the third month after the year end.

    You are required to file a return even if you did not have any taxable income.

    ~Roland

     

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