I received an inquiry about an LLC taxed as a partnership, whose only members are non-citizens/nonresidents. The LLC has had expenses but no revenue.
Does the LLC need to send out K-1s to the members?
When a partnership has no revenue, it's not required to file a Form
1065. So K-1s wouldn't be required either. But if the partnership nevertheless files a 1065 to recognize expenses, are K-1s necessary?I couldn't find an answer. But my thought would be that the K-1s wouldn't be necessary in the generic sense, but if they're not issued, the partners wouldn't be able to recognize those deductions in future years.
How am I doing? What do you think about how this should be treated?
Thanks.