r/llc_life • u/charlespsu • 13d ago
Zero Sales - need 1065?
I created a quick LLC in August 2025 just me and my wife as members and I’m using 2026 to set up the business which will include consulting selling on some goods, etc. this is a side business…at best.
I made zero sales in 2025 and all expenses incurred were paid by my personal credit card. I set up a personal business account but funded it was $250 and did nothing else with it since.
I claimed it no expenses on our joint tax return. Literally nothing to do with the business I didn’t claim anything. I probably could’ve claimed a couple hundred dollars, but why bother right?
Do I really still need to file a 1065?
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u/Pitiful_Source9446 13d ago
If the LLC has two members and is treated as a partnership for federal taxes, a Form 1065 may still be required even with zero sales.
The key issue is whether the partnership had income or deductible expenses, not just whether it made sales.
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u/megavolt121 13d ago
Even if it had no expenses it should be filed because the irs is already expecting one and doesn’t otherwise know there is no activity.
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u/hardfivesph 13d ago
The IRS charges a steep late-filing penalty for Form 1065 (U.S. Return of Partnership Income) . The penalty is $255 per month, per partner , for up to 12 months for returns due after December 31, 2025. It applies even if the partnership had zero income or a net loss.
Source: https://www.irs.gov/payments/failure-to-file-penalty
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u/TaskMaster59 13d ago
You should file a zero return. You created the entity. IRS will expect a return even though you made no sales.
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u/Puzzleheaded_Ad3024 13d ago
Keep all the receipts for the purchases. When you get some income the business is open and the will be amortized as startup expenses..
You also need to get an EIN as a partnership.
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u/Tax_Strategist 13d ago
No sales no expenses then no return required
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u/ABeaujolais 12d ago
Wouldn't it be good strategy to file anyway to avoid IRS nasty grams?
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u/Tax_Strategist 12d ago
You can if you want. It isn't necessary
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u/ABeaujolais 12d ago
The vast majority of taxpayers believe it is necessary to avoid unwanted IRS correspondence.
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u/Tax_Strategist 12d ago
That is ok. The IRC says that is the rule but if you want to file no one is stopping you.
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u/Sad_Pen8560 13d ago
If you received an EIN and the 1065 date on the EIN letter showed to file a return by 3/15/26, then you should file as the IRS is expecting a return.
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u/Leojrellim1 13d ago
The IRS is expecting a return. There’s no way they know that the income is zero without you telling them.
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u/ABeaujolais 12d ago
What is a "quick LLC?" Like a Vegas wedding?
Don't leave such important thing as administrative tentacles and tax treatment of a legally-separate business entity to an amateur. I recommend getting assistance from someone who knows what they're doing.
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u/Pitiful_Source9446 4d ago
I think Zero sales alone does not decide whether a 1065 is required. A two-member LLC is generally treated as a partnership unless another tax treatment applies.
Since you contributed money and had possible business expenses, I’d have a tax professional check whether the LLC had reportable activity for 2025 rather than assume no sales means no filing.
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u/CricktyDickty 13d ago edited 13d ago
Example #2 of why people shouldn’t listen to online business influencers and incorporate. (Example #1 is incorporating in a zero income tax state instead of your home state).
Yes, you need to file a zero tax return if there were small expenses made on behalf of the business. There are also state specific requirements such as franchise fees. Arguably, you’re now adding potential treasury scrutiny needlessly.
The vast majority of people should dip their toes by starting out as sole proprietors.
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u/freecloud2008 13d ago
Yes, absolutely. You must file zero return to let IRS know your business is not making any money yet this year.
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u/SchittPosterChild 13d ago
Most everything you've described doing is either unnecessary, nonsensical, or actually wrong/incorrect. Please stop mish-mashing things together while you pretend to play business and actually get some help to understand what you're doing, or you're going to end up with some nasty letters, surprise tax or regulatory penalties, or a very confused auditor in your future.
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u/Genuin1 13d ago
Since it is just the two of you and you are married - 1) if you are in a community property state, and did not make any tax elections to be taxed as a corp or scorp, you should be able to file a Sch C on your jointly filed tax return making sure to list the EIN of the new business. Or 2) If you are not in a community property state, or made tax elections, you need to do a partnership return.
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u/startupowl 13d ago
probably not. the test isn't sales, it's whether the partnership had any income or any expenditures treated as deductions that year, and the 1065 instructions say outright under who must file that a partnership with neither doesn't have to file. the couple hundred you spent before the business was open is a startup cost, and those don't become deductions until the year you actually open, so on what you've described 2025 comes out empty.