I am part of a 2 member LLC. Both myself and my business partner worked this year at other jobs and each made less than 10k. My partner and I started the business(a ladies lingerie store)- owe 10k in credit card bills from startup costs, pay 700 a month in rent- with utilities our monthly expenses are around 1000. We have only sold about 250 to 300 a month in product since our August opening- so basically the entire first year was a loss. My question for you is how will this effect our personal tax liability? I called the IRS and they said I do not need to file a business tax return since there is no profit- however they said myself and my partner need to include the information about the loss in each of our personal tax returns. Will I get a larger refund on my personal tax return with this loss?
We have already filed our personal tax return. Last year my husband established an LLC which didnot do any business. I didn't realize we had to file an LLC with our personal tax return. Can you please advise me on what we should do now?
Have a small parttime LLC with some partners. In 2010 we took a bit more cash distributions(because prior year 2009 we took less cash distributions) than our 2010 ordinary business income. We had 9K ordinary income after expenses, but distributions on sch K was 12K. I just dont want to raise any red flags with IRS and get some timewasting audit. Is this ok and sometimes happens?