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Author: DrWho Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121252  
Subject: LLC Filing Requirements Date: 3/13/2001 10:55 PM
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I've just formed an LLC as follows:

Members : 6
Taxation Treatment : Partnership
Purpose : An investment group holding a portfolio of stock in a company that has not gone public (yet).
Cost : $1700

An accountant told us that we were required to file a form 1065 with the IRS and distribute K-1s, regardless of wether we had a profit or loss.

The way I read the IRS info is that an LLC (partnership) is not required to file form 1065 and distribute K-1s unless they have income, or a loss they WANT to claim (ie. we could forget the startup cost and not be required to file).

Which is correct?

The same accountant also told me that the $1700 startup cost (paid by me) had to be distributed evenly to all members in the LLC and amortized over a 60 month period.

Is that true, or can the $1700 be added to my basis in the partnership, without spreading it over 5 years?
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