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?

The $1,700 can be capitalized or if you elect code SEc 248 will allow a 60 month amortization of start up costs. If you do not do a proper election you will get no deduction for the start up costs. If you paid the 1,700 your capital account should have 1,700 more than the other members any way u slice it.

Parthership law has lots of complex rules that have a million except, so you maybe able to find a loop hole and be able to amortize the cost directly to you. it also could on what the LLC operating agreement says. Partnership law has what called economic substance rules. deductions and income have to be allocated based on substanced, not what the agreement states.

If you had no income or expense you may not have to file a 1065 return, your state might make you file one anyway.

but i would file if you were issued a federal id #, i would also what to file so that you can make the 248 election to amortize start up costs.

good luck, hope this makes since i did not proof it