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?

Forum|Forum|3 years ago
February 1, 2023
1 reply
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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.

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GeorgeM777

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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