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Level 1
April 19, 2021
Question

How do I report termination of LLC where there are no assets only remaining start-up expenses.

  • April 19, 2021
  • 1 reply
  • 4 views
LLC partners contributed $15,000 each to LLC and paid start-up expenses. On termination the LLC has start-up expenses remaining and no assets. Operations have ceased. No sale of anything. How is this reported on each of the Partner's individual tax return.
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1 reply

Level 10
April 20, 2021

If you have unamortized Start Up expenses you still have assets on the books.

You need to deal with that at the partnership level, and it will flow through to the Members.

There should be no gain or loss on the termination at the partner level so when prompted to enter information after checking final k-1 you will enter in the appropriate line (Dont have the program in front of me) 0 for sale price and 0 for basis as well as the allocated gain/loss that is reported on the k=1.