I formed an LLC 18 months ago, in 2010. Nothing happened in 2010- it didn't issue equity; it didn't have any income; and it didn't have any expenses (other than formation expenses, which I paid myself, and which were only about $35). Now I'm filing a tax return for 2011 (as I took in another member and had a few thousand of expenses, but still no income) and realized that I didn't do anything in 2010, but perhaps should have. Oops.
For the 2011 return, which I'm working on, can I check on Form 1065 that it's an initial return? Or should I now file a return for 2010, listing zero everywhere on the form? Are there any penalties?
Drat! I want to fully comply with the law.