When to file for an LLC if there is no income

[AudreyMouse]

Started a LLC in November 2019, but will not open the doors until January 2020. Therefore, no income in 2019, only expenses (business license, WI seller's permit, rent, utilities, moving costs, paint, fixtures, etc.). Do I need to file anything for 2019 or can I wait until 2020?

[KittyM2]

You will not be able to deduct your startup costs until you actually open for business, so you will not file a return for 2019. I'm going to quote below from this Intuit Quickbooks article, Tax Deductions for Startups. The article is an easy read and has lots of good information.

According to the IRS, there are three categories of startup costs eligible for tax deductions, and you can only deduct them if you actually opened the business. Chapters 7 and 8 of IRS Publication 535 outline these deductions in full detail. The key takeaway is that startup costs must be related to one of three things:

1. Creating a trade or business (or investigating the creation or acquisition of an active trade or business): Some of these costs might include surveying markets, analyzing products and the labor supply, visiting potential business locations, and any other costs associated with creating or investigating a new or existing business.
2. Preparing the business to open: Any costs you incurred before opening your doors are included in this category with the exception of equipment, which will have to be depreciated. (This means you can write off a portion of the cost over a period of time.) Some eligible expenses in this category could include employee training, travel expenses to locate suppliers and distributors, advertising expenses, and consultant fees (such as attorney and accountant fees).
3. Organizational costs: If you legally set up your business as a partnership or corporation before the end of your first year in business, you can deduct these costs as well. The expenses typically associated with incorporating are: legal fees, state organization fees, salaries for temporary directors, and organizational meetings. Expenses associated with setting up a partnership agreement include: legal expenses as well as filing and accounting fees.

[Carl]

If this is a single member LLC you have nothing to report to any taxing authority until the tax year you are "open for business". If this is a multi-member LLC, then depending on what state you're in and if you registered the business as "active" in 2019, then you "may" be required to file a 1065 Partnership tax return even if income and expenses is all zeros.