I'm part of a 2 member LLC. Both myself and my business partner worked this year at other jobs and each made less than $10,000. My partner and I started the business and owe $10,000 in credit card bills from startup costs and pay $700 a month in rent - with utilities our monthly expenses are around $1,000. We have only sold about $250 to $300 a month in product since our August opening. Basically the entire first year was a loss. My question for you is how will this effect our personal tax liability? I called the IRS and they said I do not need to file a business tax return since there is no profit however they said myself and my partner need to include the information about the loss in each of our personal tax returns. Will I get a larger refund on my personal tax return with this loss?