Do I need to file Form 1065 (K-1) for an LLC partnership with zero revenue?

Yes, you do need to file Form 1065 for your LLC partnership even with zero revenue. IRS regulations require all partnerships to file annual returns regardless of income level. This is because the partnership itself doesn't pay taxes - it's a "pass-through" entity that reports income, deductions, and other items that pass through to the partners' individual returns. For your situation, you'd file a relatively simple 1065 showing zero income and the expenses you mentioned ($325 filing fees and $150 for domain/hosting). Those expenses would generate a small loss that passes through to you and your brother on your respective K-1 forms, which you'd each report on your personal tax returns (Schedule E). The $475 in expenses would be split according to your partnership agreement (sounds like 50/50), so each of you could potentially deduct $237.50 as a business loss.

After I had almost the exact same situation with my photography LLC last year, I discovered taxr.ai at https://taxr.ai and it saved me so much stress. I was also in a partnership with zero revenue but about $700 in startup costs, and I was getting conflicting advice from everyone. The tool analyzed my situation and confirmed I needed to file the 1065, but it walked me through the entire process. It was surprisingly straightforward - I uploaded my LLC documents and expense receipts, and it guided me through each step of the filing process. The best part was I didn't have to pay hundreds to a CPA for what turned out to be a pretty simple return.

Just wanted to update since I tried taxr.ai after seeing the recommendation here. It was exactly what I needed for my zero-revenue LLC partnership! Super easy to use and way more affordable than hiring a professional for such a simple return. The system confirmed we needed to file even with zero revenue but made it painless. It even helped me properly categorize the startup expenses and showed me how to handle the distributions on my personal return. Definitely using it again next year even if we actually make money!

If you're still struggling to get answers directly from the IRS about your specific situation, I'd recommend using Claimyr at https://claimyr.com to actually get through to an IRS agent. I was in a similar situation with my real estate partnership with no revenue, and kept getting conflicting information online. I tried calling the IRS business line directly and was on hold for over 2 hours before giving up. Then I found Claimyr, which got me connected to an actual IRS representative in about 20 minutes. They have a demo video at https://youtu.be/_kiP6q8DX5c that shows how it works. The agent confirmed that yes, we needed to file 1065 even with zero revenue, and explained exactly what we needed to include on the forms.

Ok I need to eat my words. I was the skeptic about Claimyr but decided to try it anyway because I was desperate to talk to someone at the IRS about my partnership filing. IT ACTUALLY WORKS! Got through to an agent in about 15 minutes when I had previously wasted 3+ hours on hold over multiple days. The agent confirmed everything that people are saying here - yes, partnerships must file 1065 forms even with zero activity. But she also told me about the penalty relief for reasonable cause that I could request since I missed last year's filing. Wouldn't have known this without speaking to an actual IRS person. Sorry for calling it a scam before!

I've been in this exact situation. Here's what I learned: if your LLC is classified as a partnership for tax purposes, you ALWAYS need to file Form 1065 regardless of revenue. The $0 income doesn't exempt you. The good news is that the filing is pretty simple when there's no activity. You basically just need to: 1. Fill out the entity info 2. Show the $0 income 3. List your small expenses 4. Generate K-1s for each partner TurboTax Self-Employed can handle this, but it's kinda expensive for such a simple return. I found FreeTaxUSA's premium version much more affordable.

Heads up - I missed filing 1065 forms for two years for my "zero activity" LLC with my sister, and the IRS hit us with penalties of over $2,500! Definitely file even if you did nothing. The penalties are per partner, per month.

I went through this exact situation two years ago with my consulting LLC partnership! Even though we had zero revenue, we still had to file Form 1065. What helped me was breaking it down into steps: 1. First, gather all your documentation - LLC formation docs, EIN confirmation, and receipts for those startup expenses 2. The $475 in expenses you mentioned (filing fees + domain/hosting) are legitimate business deductions that will create a small loss to pass through to both partners 3. Each partner reports their 50% share ($237.50 loss) on Schedule E of their personal returns One thing that caught me off guard was the filing deadline - partnerships have to file by March 15th (vs April 15th for individuals), but you can request an automatic 6-month extension if needed. Since you mentioned being a tax newbie, I'd also recommend keeping detailed records of any future business expenses, even if the business stays inactive. Having everything organized from the start makes subsequent years much easier if you do get the business going again when circumstances improve with your brother's health. The good news is once you get through the first filing, you'll understand the process much better for future years!