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February 1, 2023
Question

I am closing my LLC this year, which less than 12 months since opening it. I did not operate any business. How do I file my first/final taxes?

  • February 1, 2023
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No business was done. Not one dollar was made nor spent. The LLC was dormant it’s whole 12 month existence.

1 reply

February 1, 2023

That depends.  If your LLC elected to be taxed as a corporation, then the LLC must file a tax return even if it did no business during the tax year.  If your LLC is a single member LLC (only one owner), there is no need to file a Schedule C for the LLC because there is nothing to report.  

 

If your LLC has more than one member, the IRS considers the LLC to be a partnership unless the owners choose a different tax election.  A partnership with no income/no expenses does not need to file a tax return.  

 

State requirements regarding the situation you describe may require the filing of a return even though the LLC did no business.  For example, California imposes a franchise tax on single member LLCs even if the LLC did no business.

 

@mikesarc

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