In 2015 we filed a new LLC for trading our own Forex account as a business. As such, we have no product or service. Is the schedule C the correct form for such a business? ====>it depends; limited liability company, or LLC, is formed under state law but is not recognized as a business classification by the IRS. An LLC must choose how it will be taxed by electing treatment as a sole proprietorship or a corporation, if it is a single-member LLC, or as a partnership or a corporation, if it is a multi-member LLC. You need to file SCh C of 1040 aslognas your LLC is one owner sole proprietorship or SMLLC iif not, you need to fie form 1065; you need to complete and file IRS Form 1065, a Sch K-1 to all members if your LLC has elected to be taxed as a partnership. A partnership is a pass-through entity, meaning the partnership doesn't pay federal income taxes itself. The business passes profit and loss through to its owners. The owners record their proportionate share on their personal income tax return and pay taxes on it at the individual rate. Form 1065 is an information return that allows the business to prepare and distribute a Sch K-1 to each owner. The K-1 is the partnership equivalent of a W-2.and you need to cinoem/loss on sch k1 on sch e or sch d or etc.and finally on your 1040
If it is, how do we classify it? We do have expenses related to business. ====>Asa SMLLC you can claim then on sch C of 1040 as a MMLLC as a partnership I mean you need to claim then on form 1065 or SCh K of 1065.