Question

Single Member LLC Formed late 2023

Forum|Forum|2 years ago
February 22, 2024
1 reply
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I formed a single member LLC in October of 2023 but chose my starting date as Jan. 1, 2024. Should I not file taxes for this LLC and claim the start up cost and expenses for 2023 next year 2024?

J

JulieS

Yes, that's right. If your start date is January 1, 2024, you don't need to include your LLC on your tax return until next year.

I am assuming that you had no business income and no expenses other than start-up costs.

If both of those are true, you can just include your 2023 start up expenses on your 2024 tax return.

Start-up expenses are the expenses you incur before you actually begin business operations. Your business start-up costs will depend on the type of business you are starting.

They may include:

Costs for research, advertising, travel, surveys, and training.
Costs for setting up the business location.
Organizational costs for setting up a business entity, including, legal costs, licenses, permits, etc.

You can elect to deduct up to $10,000 of business start-up costs and up to $5,000 of organizational costs.

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J

joshblackfordAuthor

Ok makes sense. My LLC was formed in Arizona on Oct. 16, 2023. Am I able to pick the start date or do I have to stay with the formation date? I was reading something about how you can file your LLC with AZ but choose to delay the formation date. I didn't do that because I was planning to start business in 2023 but life happens. My business just went live this year.

V

Vanessa A

Since you had no business activity and you are filing as a single member LLC, you would not need to file anything for 2023, if you did not have any business conducted in 2023, other than applying for the LLC. Since all of your business income would be included on Schedule C, and you have no income to report, a Schedule C would not be needed.

Arizona follows the rules for the single member LLC being treated as an extension of you, therefore you would not need to include anything on your AZ return either.

Arizona Corporation filing

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