Legal Question in Tax Law in New York

LLC and Schedule C

In line with the previous question and answers, do I understand correctly that if my LLC has no income for the year, I can file zero on our 1065 (thus avoiding the NY State LLC $100 per-member fee) and the individual members of the LLC can still deduct expenses (supplies, travel, equpiment rental, etc.) on their Schedule C's by listing themselves as consultants?

Where do you identify yourself as a consultant? On Line A?

Thank you.


Asked on 1/07/05, 2:17 pm

1 Answer from Attorneys
Eric Morgenthal Law Office of Eric L. Morgenthal, PLLC

Re: LLC and Schedule C

What you are looking to do doesn't sound right. In all honesty, what you have are bits of informaton. And having a "little information" is dangerous.

If your intent is merely at avoiding the $100 annual filing fee, then I would not recommend it. Furthermore, I am always skeptical when business owners list themselves as "consultants" of their own entity.

Your should really consult with a professional about your issues. Doing the wrong thing here can cost you much more in tax troubles than a $100 filing fee.

Best of luck to you.

-Eric Morgenthal

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Answered on 1/08/05, 11:49 am


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