As a general rule, if you’ve never filed taxes for your dormant LLC, you do not need to file taxes as long as you haven’t been using the LLC and it has had no revenue.
If it’s taxed as a disregarded entity, you only need to start doing Schedule C filings for it when there’s income that needs reporting or losses that you want to declare and apply/carry forward. Basically the same with partnership-type LLCs.
If it’s taxed as an S-Corp or C-Corp, however, you do need to do tax returns from the date the election was made effective.
Of course, the above assumes you haven’t been using the LLC as an operating entity and have generated no revenue. If you have, then you should talk with a tax attorney, CPA or accountant, and understand what your options are.
6 Comments
I had an LLC formed an with my brother, and the organizer passed me a fake EIN. I got spooked and had the LLC dissolved that same year by someone else. Do I need to file a tax return? No movements, no ein?
Hi there Paloma,
The short answer is probably yes, but there are other factors that need to be considered and we will need to gather additional details from you. You can schedule a consultation with a tax attorney using the link below:
https://www.l4sb.com/services/tax-attorney-consult/
I created an LLC in October of 2023 but I’ve never used it. I did it for a website that allowed other people to finance for a dog as I am a dog breeder but never finished the sign up for the website. I’m just confused as to if I need to file a tax return or not and how I do so if I need to.
Hi there, and thank you for your question. If you started an LLC but have never used it, it has never had any income/revenue, and there are no losses or other deductions you’re looking to claim as a result of its expenses or activities, you likely don’t need to file a tax return for it. There are some exceptions to that: if you elected to have it taxed as a corporation (whether Subchapter S or C), the IRS will be expecting a tax return for it even if it had no activity. Similarly, if your LLC is in New Mexico and you’ve registered it with the New Mexico Taxation and Revenue Department, they may be expecting periodic Gross Receipts Tax returns even if you’ve had no business activity. The best thing you can do if you don’t intend to move forward with the LLC is to close it out properly — and if you’re still unsure of your obligations, you should talk with a qualified CPA or tax attorney. We do offer flat-rate, 30-minute consultations with a tax attorney here: Attorney Christina Cavaleri Talks About The Ever Changing Financial and Legal Landscape
All the best,
Ian M. Alden, Esq.
filed under an llc once in nm and never again it’s been 11 years since . what now it’s not been used biuhave not closed it
Go here: https://portal.sos.state.nm.us/BFS/online/CorporationBusinessSearch, and look up your company. If the status is “Active”, I would recommend you dissolve it.
We do sell LLC Dissolution. To learn more, see pricing and to order, go here.
We would recommend you update and maintain your Registered Agent service for at least 6 years after your LLC has conducted any business with any third-party, just to prevent a surprise lawsuit and a default judgement. If you’re Registered Agent information is not correct, consider correcting it before you dissolve your LLC.
Larry.