Thoughts on LLC with no income

[JT2307]

Partnership - formed in 2017 - no income in 17 or 18 but incurred numerous expenses for advertising and merchandise to be sold. along with other start up costs. Filed inactive in 2017 since it was just getting started and no real expenses. 2018 worked hard but did not make any sales.

How would you file 2018 return? No income but expenses? Roll it all into start up costs. I don't like filing returns with no income. They finally have a few sales in 2019.

[TaxGuyBill]

2018 worked hard but did not make any sales.

That sounds like it was 'open', so any expenses are no longer Startup Costs. If there are ANY deductible expenses, a Partnership return needs to be filed claiming those expenses.

[Burke]

I agree. A new business often has losses the first couple of years. Not unusual, especially since you state he has made sales in 2019.