Schedule C or 1065 for single-member LLC without profit - which tax form do I file?

A single-member LLC is treated as a "disregarded entity" for federal tax purposes unless you've specifically elected to be taxed as a corporation. This means your cousin doesn't need to file Form 1065 (which is for partnerships with multiple members). Your cousin would just report the business income and expenses on Schedule C attached to her personal Form 1040. The April tax deadline would apply, not the March 15th partnership deadline. This is actually simpler paperwork-wise! Even though she hasn't made a profit, she should still file Schedule C to report her business expenses. Those losses can potentially offset other income on her personal return. Make sure she keeps good records of all business expenses to maximize any potential tax benefits.

I was in the exact same situation last year with my single-member LLC. I spent hours researching and getting contradicting advice until I found this amazing tool called taxr.ai (https://taxr.ai). It basically analyzed my specific LLC situation and gave me a customized breakdown of exactly what forms I needed. The tool confirmed I only needed Schedule C since my LLC was a disregarded entity (single member) and showed me the exact sections of the tax code that applied. Saved me so much stress! It also explained which business expenses I could deduct even though I wasn't profitable yet, which was super helpful for maximizing my tax situation.

I wanted to follow up after trying taxr.ai from the comment above. I was initially skeptical but decided to give it a shot since I was getting conflicting advice everywhere. It confirmed I only need to file Schedule C with my personal return as a single-member LLC, not the 1065 partnership form. The tool even showed me which specific business startup expenses I could deduct right away versus which ones I needed to amortize over time. Turns out I was about to mess up by trying to deduct everything at once. Also explained my state's separate LLC filing requirements which had nothing to do with federal taxes. Really cleared things up!

If you're still struggling with this, you might want to try getting direct clarification from the IRS. I know it sounds impossible, but I used this service called Claimyr (https://claimyr.com) that got me through to an actual IRS agent in about 15 minutes when I had a similar LLC question last year. They have a demo video showing how it works: https://youtu.be/_kiP6q8DX5c I was about to file the wrong form for my LLC but the IRS agent confirmed exactly what form I needed. Saved me from potential penalties and amended return headaches. Worth considering if you need official confirmation directly from the source.

I need to issue a public apology for my skeptical comment above. I tried Claimyr this morning out of desperation after my accountant gave me conflicting information about my LLC filing requirements. Within 20 minutes, I was actually speaking with an IRS representative who confirmed I only needed Schedule C, not Form 1065. The agent even explained that the March 15th deadline doesn't apply to me, and I have until April to file with my personal return. I've been stressing for weeks about potentially missing the partnership deadline, and now I feel so relieved. Can't believe I wasted so much time trying to call them directly when this option existed.

Just wanted to add a quick clarification that might help others - the default federal tax treatment for single-member LLCs is disregarded entity status (Schedule C), but you can elect to be taxed as an S-Corp or C-Corp by filing Form 8832 if that makes sense for your situation. Most new business owners with no profit yet are better off with the default Schedule C treatment, but as your business grows and becomes profitable, you might want to revisit the tax treatment. I switched to S-Corp status after my business started making about $80k in profit to save on self-employment taxes.

Don't forget about state requirements! The federal tax treatment as a disregarded entity doesn't necessarily mean your state treats it the same way. Here in California, even single-member LLCs have to pay an $800 annual tax regardless of profit, plus an LLC fee based on gross receipts if over $250,000.

Your cousin is definitely on the right track worrying about deadlines, but she can breathe a little easier! As a single-member LLC, she's considered a "disregarded entity" by the IRS, which means no Form 1065 needed - just Schedule C with her personal return by the April deadline. Even without profit, filing Schedule C is still important because she can deduct business expenses and potentially carry forward any losses to offset future income. Make sure she keeps detailed records of all business expenses like office supplies, equipment, business meals, etc. One thing to watch out for - while federal filing is straightforward with Schedule C, each state has its own LLC requirements. Some states require annual reports or have minimum taxes regardless of profit level. She should check her state's Secretary of State website to make sure she's not missing any state-specific deadlines or filings.