My question is a bit different, actually.
I am a 18 years old who owns a single member llc since last july. The llc had been not making a penny but loosing money for the last months and I expect it to continue for some period of time.
Since I am under 24 and a full time student, I am considered as a dependent of my mother, which means I don't file for 1040. So my question is, single member llc (which I wanted irs to treat as a sole proprietor) files schedule c with owner's 1040. But yet, since my llc makes less than $400, owned by someone who doesn't need to file a 1040, do I still need to file my llc tax return?
If you own a business you have to file a yearly return with the IRS regardless of whether there was a loss or profit.
To answer your question about your mom's tax return, the IRS lets you choose which way you want to handle it. You can file your own 1040 with your LLC's losses, or you can choose to let your mom claim you as a dependent on her tax return. However, you cannot do both. For example, when I was in college I worked in several paid internships and work study programs. My dad could have claimed me as a dependent, but instead I filed my own 1040 since he was no longer supporting me.
You and your mom (and possibly an accountant) need to decide which option makes more sense for you. If you had income from other sources it might make sense for you to file your own tax return. However, if you don't have any income to offset your LLC's losses, then it might be a better option if your mom claims you as a dependent.
I don't know how the LLC's losses will pass-through if your mom claims you as a dependent, since technically it's not her business. I'm not sure if she can claim your losses on her return, but she can at least claim the deduction for you as a dependent. You'll need to consult an accountant to figure out if you can get both.
Since the business ran a loss, you may want to file so that in the future you can avail yourself of the tax loss carryforward.
Please understand that I am not a tax attorney and the following should not be taken as anything other than a best guess.
If the LLC has a loss, I think the LLC should not be relevant to the question of if you need to file a 1040. Of course if it had made a profit and been your major source of income (which it wasn't) then it would affect the ability of your mother to claim you as a dependent.
Stated another way, if your mother is able to claim you as a dependent without the LLC, then the LLC would not affect her ability to do so since it had a loss and clearly did not contribute to your support.
I would recommend you call the free IRS help line and ask them this question, you have nothing to loose.