Inactive single member LLC - should I be filing and can I deduct expenses such as bank fees

[ross2022]

I have a single-member LLC which was used for consulting for many years; however I have not been conducting business activities or promoting the business for several years, as I became a W2 employee. I still keep the business registration up to speed, a business credit card, my business web/e-mail, and business bank account current, as I foresee I may return to consulting work in the future.

1) should I be continuing to file a schedule C (I think I skipped it last year, but did in prior years). Trying to determine if I get 'deluxe' or 'home and business edition', which I've always gotten

2) is it legitimate to deduct expenses with no business income or pursued activities, such as:

- dedicated business bank account fees

- business e-mail and website fees

- Costco membership for my business credit card (though Costco used personally)

- annual state business registration fees

Many thanks for your feedback in these busy times!

[ThomasM125 · Accepted solution]

It's not acceptable to deduct expenses for a business that is not up and running. You would only be considered to be a legitimate business if you were "open for business", which would mean you were actively soliciting sales. If your business is not active, then you should not be filing a schedule C for it and deducting business expenses.