How do I tell the IRS that my LLC was created in 2024, but did no business, and paid no salaries?

Forum|Forum|1 year ago
March 29, 2025
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I created my LLC in Oct, 2024, but have done nothing with it till 2025. I changed it to an S-Corp in 2024, and TurboTax is telling me the #1 reason S-sorps get audited is not paying salaries to there shareholder officers. I found online that I need form 1120-S and mark it "zero-activity return," but when I searched 1120-S on Turbotax, it didn't find anything. Thanks in advance for your help.

AmyC

Employee

If you made the election to be an S-corp, then you should file a return. Officers should get a w2 for the value of work performed. Since you haven't done anything with it yet, you could argue that you didn't deserve a paycheck.

The S corp is filed using the business software.

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moabnewspapersAuthor

Do I need to make a W-2 for myself that is all zeros?

AmyC

Employee

No, without income or activity, it is reasonable to not have a w2, in my opinion. You just need to be aware this year and remember to pay yourself and get a w2 based on the services you perform. If you were to hire someone else to do what you do for the business.

Reference: Small business and self-employed tax center - my favorite link. Videos to help grow your business and lots of great advice.

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