The typical 1040 filer doesn’t have to file if their yearly income was less than $4000 - $5000. (I don’t remember the specific number, so don’t beat me to death for not having it to the specific fraction of a cent). I was wondering, does an S-corp have a similar requirement? If an s-corp doesn’t have a certain amount of income, it doesn’t have to file? I was gonna ask this same question about an LLC, but an LLC is pass-thru, so it probably doesn’t apply to an LLC. Or, am I mistaken on that? Thanks.
mcwagner - I thought I didn’t have to file a return for my LLC (because it is a passthrough entity). I declare its revenues and expenses as part of my personal return. I do know I have to prepare one and send it to all the partners… But this is different from filing… Am I missing something?
Actually - I thought this was one of the advantages of having an LLC instead of a C-Corp…
Only disregarded entities are not required to file returns. Partnerships file form 1065 plus any state returns. Members/partners get a K-1 from the LLC/partnership.
passthru entities file seperate returns and issue K-1’s to members/partners/shareholders.
disregarded entities don’t file a seperate return, but they DO file income included on the personal 1040. only single member LLC or husband/wife LLC/partnership can be disregarded.
if a disregarded entity has a tax ID, it should be included on the return, even if it has no activity.
Just to clarify. A husband/wife LLC defaults to a partnership, but can elect to be treated as a disregarded entity for federal income tax purposes in a community property state only. In all other states, husband/wife LLC defaults to a partnership for federal income tax purposes.