Is a Non-Activity Report required for an Iowa LLC with zero income/expenses?

Davenport, Iowa
Tax, SDIRAs & Cost Segregation
3yFollow

Is a Non-Activity Report required for an Iowa LLC with zero income/expenses?

Heli Beran
Investor · Belmont, CA · Member since 2021 · 4 posts · 0 votes

Hi everyone!

I'm wondering if a Non-Activity Report is necessary for an Iowa real estate LLC that was formed but that never conducted any business for that year because the deal for which the entity was formed fell through? (Please note that the cost of forming the LLC was covered by the seller who backed out of the deal.)

The LLC has two members, and the LLC will be taxed as a partnership.

Thanks!

0Reply
15 views

Most Popular Reply

Craig Anfinson
Investor · Urbandale, IA · Member since 2016 · 10 posts · 4 votes
3y
Quote from @Heli Beran:

Hi everyone!

I'm wondering if a Non-Activity Report is necessary for an Iowa real estate LLC that was formed but that never conducted any business for that year because the deal for which the entity was formed fell through? (Please note that the cost of forming the LLC was covered by the seller who backed out of the deal.)

The LLC has two members, and the LLC will be taxed as a partnership.

Thanks!


Since you plan on using the LLC, you should pay the 30 dollar fee to keep active, this is due every 2 years, hope this helps

1Reply
See this reply in the discussion

5 Replies

Jump to latestLatest
  • Jeff Nash
    Accountant · McKinney, TX · Member since 2023 · 394 posts · 580 votes
    3y

    Here is a step by step process - https://help.sos.iowa.gov/how-....  If you no longer need the entity you would file an Entity Dissolution.  

    1Reply
  • Heli Beran
    OP
    Investor · Belmont, CA · Member since 2021 · 4 posts · 0 votes
    3y

    Hi Jeff,

    Thanks! There are plans for the LLC to be used in the future, so dissolving is not needed at the moment.

    0Reply
  • Craig Anfinson
    Investor · Urbandale, IA · Member since 2016 · 10 posts · 4 votes
    3y
    Quote from @Heli Beran:

    Hi Jeff,

    Thanks! There are plans for the LLC to be used in the future, so dissolving is not needed at the moment.


    0Reply
  • Craig Anfinson
    Investor · Urbandale, IA · Member since 2016 · 10 posts · 4 votes
    3y
    Quote from @Heli Beran:

    Hi everyone!

    I'm wondering if a Non-Activity Report is necessary for an Iowa real estate LLC that was formed but that never conducted any business for that year because the deal for which the entity was formed fell through? (Please note that the cost of forming the LLC was covered by the seller who backed out of the deal.)

    The LLC has two members, and the LLC will be taxed as a partnership.

    Thanks!


    Since you plan on using the LLC, you should pay the 30 dollar fee to keep active, this is due every 2 years, hope this helps

    1Reply
  • Heli Beran
    OP
    Investor · Belmont, CA · Member since 2021 · 4 posts · 0 votes
    3y

    Hi Craig, 

    Yes, the Biennial Report was filed!

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free