Would there be a penalty?

[ILLMAS]

TP created an LLC in 2014, had no income but some startup expenses, if I were to prepare an 1120S at this point, most likely it going to have a loss, would the IRS assess a penalty for no extension?

Thanks

MAS

[Max W]

Yes. $195/m for each member of the LLC, to a maximum of 9? months.

[jklcpa]

A penalty may be assessed but relief may be granted using rev proc 84-35 IF LLC is taxed as a partnership and can answer 'yes' to the questions below. I think some here have also used this rev proc successfully in having penalties abated for late filing of an S corp return as well, although I have not.

If you can answer the below questions “yes”, the penalties will be waived.

1. Is this a domestic partnership?
2. Are there 10 or fewer partners?
3. Are all partners a natural person (other than a nonresident alien) or an estate?
4. Is each partner’s share of each partnership item the same as his share of every other item (a husband and wife and their estate shall be treated as one partner)?
5. Have all the partners fully reported their share of the income, deductions and credits of the partnership on their timely filed income tax returns?

If the answers to all of the above questions are “Yes,” please sign this form and return it with a copy of the penalty assessment. You do not owe the penalty.

[Abby Normal]

There would be no loss if there were only startup costs. You can't expense or amortize until the business is operational.