How To File When No Income - LLC
I have an LLC that is treated as an S-corp. This year we have no income as we are only holding and buying vacant lots. THe lots were bought with money I invested in the company this year and the only expenses have been the property taxes and telephone and postage.
Please clarify your post. There is no such thing as an LLC treated as an S Corp. An LLC can either be treated as a disregarded entity if it has only 1 member, or a partnership, or a C Corp. AN S corp is a different entity with different tax rules.
Please clarify what entity you have and post a question.
weird my LLC is an S Corp
I would think you would show a loss and get a K1 from it to be filed with your personal taxes.
Thanks Eric5
Finniganps - check your facts. [ Edited by linlin on Date 01/20/2006 ]
LLCs can be treated as partnerships, corporations or sole proprietorships. How they are treated depens on what you elect to do with the IRS. Or at least that is the way it is everywhere except where you are finniganps
"Finally, if the LLC is a corporation, it should file a Form 1120, U.S. Corporation Income Tax Return. The 1120 is the corporate income tax return, and there are no flow-through items to a 1040 from a corporate return. However, if the LLC filed as an S Corporation, it should file a Form 1120S, U.S. Income Tax Return for an S Corporation and each owner reports their pro-rata share of corporate income, credits and deductions on Schedule K-1 (Form 1120), Shareholder’s Share of Income, Deductions, Credits, etc.
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http://www.irs.gov/businesses/small/article/0,,id=137016,00.html[ Edited by linlin on Date 01/20/2006 ]
A true S-Corp issues stock and has certain corporate recordkeeping requirements that if not scrupulously followed will allow the courts to pierce the veil and attach personal liability in the event of a lawsuit.
The LLC, on the other hand, has a more informal organizational structure and the administrative recordkeeping requirements are greatly relaxed.
That is what I have been told.