Question

K1 Form and Taxes

Forum|Forum|3 years ago
December 29, 2022
2 replies
0 views

In October I created a company that is a partnership with three others. In our operating agreement we own equal shares.

We opened an account, and I funded the account with a deposit.

I know that normally we would file K1 forms each person to show equal income but technically we did not earn any income this year. The only deposit was mine personally to open the account.

Do I need to file anything?

Not A Product Question

M

Mike9241

every domestic partnership must file Form 1065, unless it neither receives income nor incurs any expenditures treated as deductions or credits for federal income tax purposes for the year.

no income, no expenses, no credits, = no filing.

Rick19744

Employee

In addition to @Mike9241 comment, a few comments:

You indicate that "you" funded the business account.
Is there going to be equal funding by the other 3 members?
- If this is anything other than 'yes", then you need to have a consult with a tax professional
If you haven't started business, then any costs incurred will be capitalized as start-up or organizational costs. These will be expensed or amortized depending on the amount incurred.
Just because there may not be any federal or state income tax filings, make sure you understand if you have any filing with the Secretary of State office.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.