How do I file my W2 and 1040 for an LLC with no income yet?
So I'm currently working full-time at a physical therapy clinic where I get a regular W2, but I recently took the plunge and started my own single-member LLC on the side. I haven't actually made any money from my LLC venture yet, and honestly don't expect to see any income from it until sometime after January 1st at the earliest. I'm really confused about the tax filing process now. Do I need to file my W2 income from the clinic and then do something separate for my 1040 as the single member LLC? Even though the LLC hasn't generated any income yet? Sorry if this is a super basic question - I'm just trying to figure out all this tax stuff for the first time as a business owner. Any help would be really appreciated! Tax season is coming up faster than I'd like to admit and I want to make sure I'm doing everything right.
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McKenzie Shade
You don't file your W2 and 1040 separately. The 1040 is your personal tax return where you report ALL your income, including your W2 wages from your therapy clinic job. For your single-member LLC with no income yet, there's not much to report, but you'll still account for it on your personal tax return (1040) using Schedule C. Even with zero income, you might have some startup expenses that could be deductible now. Keep track of any money you've spent setting up the LLC, like filing fees, website costs, supplies, etc. By default, a single-member LLC is treated as a "disregarded entity" for tax purposes, which means the IRS sees it as an extension of yourself. You don't file a separate business tax return unless you've elected to be taxed as a corporation (which most small LLCs don't do).
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Harmony Love
•Thanks for the explanation! Just to clarify - do I need to file a Schedule C even if I have zero income? And can I really deduct the startup costs even though I haven't made any money yet?
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McKenzie Shade
•Yes, you should file a Schedule C even with zero income if you have expenses to report. The IRS allows you to deduct up to $5,000 in startup costs in the first year of business, with any remaining costs amortized over 15 years. This applies even if you haven't generated revenue yet, as long as you're actively trying to start the business. Keep in mind that business losses on Schedule C can potentially offset other income, reducing your overall tax liability. Just make sure you're keeping excellent records of all expenses and that they're legitimate business expenses.
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Rudy Cenizo
After dealing with a similar situation last year with my consulting LLC, I found taxr.ai (https://taxr.ai) super helpful for making sure I was tracking my business expenses correctly even before I had income. It analyzed all my receipts and categorized everything so when tax time came, I had perfect documentation. The best part was it identified several startup costs I didn't realize were deductible!
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Natalie Khan
•How does it handle expenses if you use something for both personal and business? Like if I bought a laptop that I sometimes use for my LLC but also for personal stuff?
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Daryl Bright
•I'm curious - does it integrate with any accounting software? I've been using Excel but thinking about getting something more professional as my business grows.
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Rudy Cenizo
•For mixed-use items like laptops, you track the percentage used for business and only deduct that portion. Taxr.ai lets you specify the business use percentage for each expense and maintains that documentation if you ever get audited. Yes, it integrates with QuickBooks, Xero, and several other accounting platforms. I started with spreadsheets too, but the automatic import feature saved me tons of time when I switched to proper accounting software. It can pull in your existing Excel data to make the transition easier.
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Daryl Bright
Just wanted to update - I tried taxr.ai after asking about it here and wow! It organized all my LLC startup costs and showed me I could actually deduct my home office setup and the business registration fees this year even though I don't have income yet. It even flagged some car mileage from visiting potential client sites that I didn't realize I could track. Definitely less stressed about filing with my W2 job and LLC on the same return now!
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Sienna Gomez
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Kirsuktow DarkBlade
•Wait, how does this actually work? The IRS phone system is notoriously terrible. How can some service magically get you through?
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Abigail bergen
•Sounds like a scam tbh. Nobody gets through to the IRS that fast. And why would you need to talk to them anyway when there's plenty of info online?
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Sienna Gomez
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Abigail bergen
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Ahooker-Equator
Don't forget you might need to file a Schedule SE for self-employment tax if your LLC starts making profit. Even though you haven't made money yet, it's good to be prepared for when you do. Also, check if your state requires additional filings for LLCs even with no income - some states have annual LLC fees or reports regardless of profit.
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Anderson Prospero
•Is it true that if your LLC makes less than $400 in a year, you don't have to pay self-employment tax? I heard that somewhere but not sure if it's accurate.
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Ahooker-Equator
•Yes, that's correct. If your net earnings from self-employment are less than $400 for the year, you don't have to pay self-employment tax. However, you still need to report the income on your tax return regardless of the amount. Be aware that even if you don't owe self-employment tax, you might still need to file other forms related to your business activities depending on your situation. And some states do have minimum tax requirements for LLCs regardless of income, so always check your specific state rules.
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Tyrone Hill
One thing nobody mentioned - make sure you're tracking your business miles from day one even with no income! I drive to networking events, meetings, supply stores etc for my LLC and those miles are deductible on Schedule C even before you have revenue. The standard mileage rate adds up quick!
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Toot-n-Mighty
•Is there an app you recommend for tracking business miles? I always forget to log them and probably missing out on deductions.
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