How should I report income received from rental real estate?

After a few days of research need to ask the question -- I have a new client that formed a LLC in Nevada on 12/15/2008. The only transactions they had were start up costs of $2464.67. The LLC is going to have rentals as the source of income. Properties were purchased but none of the closings happened until after 1/1/09. They want to amortize the start up costs which means their K-1's will show an expense of negative 4 for each of them. My question is should they file 1040NR's or not? After I see a few answers I am going to ask NATP the research question.