We have launched an LLC this year, and have a couple months of operation have decided to close the business for personal reasons. We've had operating income of $1000 in Q1 and $1800 in Q2 and have not yet filed any forms 941. If we were to close the business effective ending Q2, do we need to continue filing, or do a 944 at the end of the year?
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The 941 and 944 forms are for payroll taxes. You didn't mention whether the business has any employees. If it had no employees, you wouldn't need to file these forms at all. If the business does have employees, when you set up your EIN you would've told the IRS whether you planned to file the 941 or the 944 for your payroll taxes. (The 944 is for very small businesses that accrue less than $1,000 total annual payroll taxes for all employees). You can find this information [whether you told the IRS you'd be filing a 941 or 944] with the EIN letter the IRS sent you when you set up the EIN.
If you told the IRS you would file one of these forms, you should file or you will likely get letters from the IRS asking you to file. If you didn't end up having or paying any employees, the form can be filed with all 0's for the amounts.
If you didn't tell the IRS you would file a form, and had no payroll, then you don't need to file either one.
If you actually had some payroll, file either a 941 or 944 depending on what you told the IRS and report the amounts, and pay the payroll taxes due.
If you can't find the information about which form you selected, you can file the 941 and the IRS would likely adjust your records if you had originally said you would file the 944 instead.
If you file either form, be sure to mark the box to indicate it is a final return if you will not file again for this business in the future.
Ah of course! No employees, no payroll has been run, so no payroll taxes due to file.
The only cash flow would be owner draws to cover the equity still debiting the business.
Thanks!
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