Re: Tax return for llc

""Several partners have formed an LLC and there was no income, all money
contributed went to capital and most all expenses were setup as
depreciable asset. There were a few charges that were expensed; misc
stationary and postage. The big fees were for architectural and
engineering services (the depreciable asset). The LLC is building a
hotel
and construction will not begin until later 2007 and will not open and
bring in income unitl 2008.
So, ending our first year with a loss, and with no income brought into
the
LLC, would I have to file a form 1065 & k1's in 2006?""

Yes. As a general matter, for purposes of filing returns an LLC or other
entity begins to carry on business when the tasks required to organize it
to carry out its intended purpose(s) are complete.

In this case, the LLC has been formed, all of its members have
contributed
capital, and it has begun to construct (or to cause the construction of)
the hotel it will ultimately own. It should therefore file a return for
2006.

Keep in mind, that this is a different question from whether or not the
LLC is entitled to claim and deductions, such as depreciation, or whether
it is still in the start-up phase during which costs must be capitalized
and amortized.

.

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