Unused LLC and taxes

3 Replies

I have an LLC which was created this year, for a deal that fell through day before closing. There have been no transactions-no income no bank - but I want to keep it open for another deal. Do i have to file taxes on it?

If you're the only person on the LLC then it's disregarded for tax purposes. Even if it had income/expenses it just gets reported on your 1040.

If there are 2 or more people on the LLC and it's a partnership you should also be good- partnerships with no income/expenses may not need to file.

@Matthew Walsh

You want to determine if there is a filing requirement at both the federal and state level.

If it is a multi-member LLC, the IRS says no filing requirement if no activity.
No activity is normally hard to do though if you created an entity and planned to do business; just my opinion.

The state is another animal, The state may want a filing even if there is no activity. The question then goes, can you file a state return without filing the federal return.