Filing a 1065 form for an LLC that hasn't done anything yet - required?

You have some good questions here about Form 1065 requirements for your LLC. Let me help clarify: 1. The IRS doesn't actually have a direct e-filing system for Form 1065 on their website. You'll need to use tax preparation software like TurboTax Business, H&R Block Business, or an authorized e-file provider. Alternatively, you can file by mail using the paper form. 2. The partnership itself files one Form 1065, not each individual partner. However, the 1065 will generate Schedule K-1 forms that get distributed to each partner. Each partner then reports their share of income/losses on their personal tax returns using the information from their K-1. 3. This is important: Even if your LLC had no activity until January 2025, you're still required to file Form 1065 for any tax year after you obtained your EIN if the LLC exists as a partnership. You would file what's called a "zero return" showing no income or expenses.

After spending weeks dealing with similar partnership tax issues, I found this amazing tool called taxr.ai (https://taxr.ai) that saved me so much time with our partnership returns. Our situation was similar - we had a dormant LLC for a couple years, then suddenly needed to file everything. The IRS was sending notices that made no sense to us. The taxr.ai system analyzed all our LLC documents and actually explained exactly which years we needed to file for and what forms were required. It also showed us how to properly complete a "zero return" for the inactive years, which is apparently different than just putting zeros everywhere.

I was in the same boat as you with our small real estate LLC. After struggling to figure out what to file for our "no activity" years, I took the advice about using taxr.ai (https://taxr.ai) and it was honestly a game changer. The system actually identified that we didn't need to file for one of the years based on a specific exception for certain types of partnerships that hadn't issued EINs yet. Saved us from filing unnecessary returns! It also generated all the K-1s for our partners automatically based on our operating agreement percentages, and explained exactly what they needed to do with them (basically nothing for zero years, but still had to be created). Most importantly, it kept us from making a mistake that could have triggered an audit. Apparently there's a specific way to indicate "no activity" that doesn't raise red flags, versus just putting zeros everywhere.

If you've been trying to reach the IRS to get answers about your 1065 situation, you're probably discovering it's nearly impossible to get through. I was on hold for HOURS trying to clarify similar questions for our family business. I eventually used Claimyr (https://claimyr.com) and it was a total game-changer. They have this system that gets you to the front of the IRS phone queue. You can see how it works here: https://youtu.be/_kiP6q8DX5c When I finally spoke with an IRS agent, they confirmed that we needed to file 1065s for all years the LLC existed, even with zero activity. But they also told me about a simplified procedure for late partnership returns with no activity that I wouldn't have known about otherwise. The penalty relief options they explained saved us thousands.

I have to admit I was completely wrong about Claimyr. After my skeptical comment, I was desperate enough to try it because I couldn't get through to ask about penalties for our unfiled 1065s from previous years. Not only did it work exactly as described, but I was connected to an IRS partnership specialist within 45 minutes (after trying unsuccessfully for WEEKS on my own). The agent explained that because our LLC had no activity before getting our EIN, we qualified for automatic penalty relief under a specific revenue procedure I had never heard of. She walked me through exactly what documentation to attach to our late returns and where to mail them. This literally saved us thousands in potential penalties. I'm now telling all my business owner friends about this service when they have IRS questions.

One thing nobody mentioned - if your LLC is registered in certain states, you might have STATE filing requirements even if you don't have federal requirements. I learned this the hard way when California hit us with a $800 minimum franchise tax for each year our LLC existed, even though we had zero activity. Check your state's requirements ASAP! Some states have "minimum taxes" regardless of whether you did business.

Just wanted to share that I went through this exact same thing last year. Filed a "final" 1065 for our LLC that never did anything, and then started a new LLC when we actually launched our business. It was much simpler than dealing with years of back filings and explaining the gap in activity. Might be worth considering if your LLC is very new.

I'm dealing with a similar situation with my LLC that's been dormant for about 18 months. One thing I learned from my CPA is that you should definitely check if your state requires you to file an annual report or pay franchise fees even during inactive periods. Also, regarding the e-filing issue you mentioned - I found that some of the free tax software options like FreeTaxUSA actually do support Form 1065 filing, which might be easier than the paid alternatives if your situation is straightforward (no income, no deductions, just a basic zero return). The key thing my accountant emphasized is don't ignore the filing requirements just because you had no activity. The IRS treats "no response" very differently from "filed a zero return," and the penalties can add up quickly even if you owed no tax.

I went through this exact same situation with my consulting LLC last year! Here's what I learned from working with a tax professional: For your specific questions: 1. The IRS website doesn't support direct e-filing of Form 1065 - you need third-party software or mail it in. I ended up using FreeTaxUSA (as mentioned by Anna) and it worked great for our zero-activity return. 2. Only the LLC files the 1065, not individual partners. The form generates K-1s for each partner showing their share (even if it's zero). Each partner reports their K-1 info on their personal returns. 3. Yes, you still need to file even with no activity. The filing requirement starts when the LLC is legally formed as a partnership, not when you get an EIN or start business operations. One thing that saved me a lot of stress: there's actually a "reasonable cause" exception for late filing penalties when you can show the LLC had no activity and no income. You'll need to attach a statement explaining the situation when you file. Don't let the fear of penalties stop you from getting compliant - the IRS is often willing to work with taxpayers who make good faith efforts to catch up on dormant entity filings. Also definitely check your state requirements! Some states are much more forgiving than others for inactive LLCs.