I created a llc with the intention of starting a buisness. Because of the economy I scrapped my idea. Never filled for a buisness license never made a sale never even acquired a customer let alone make any money. Yet I still recieved a letter from the state saying I owe taxes.. what am I missing why do I owe taxes on literally $0
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What state? Some states have an annual tax or fee for an LLC, whether or not the business is active. Apparently what you are missing is that you are in one of those states.
I agree with @rjs. this is probably an annual franchise tax or fee. to avoid getting a bill every year you probably need to take steps to formally (for state purposes) terminate the LLC which usually is just filing articles of dissolution or something similar. Check with the office where you registered the LLC.
Utah been researching online. I can't find anything about a fee I would be charged
Utah Division of Corporations and Commercial Code
Fee Schedule
"Renewal/Annual Report Filings"
"Limited liability company (LLC) $18"
"Late renewal fee $10"
What taxes or fees does the letter say you owe? Does it say you owe taxes for the LLC, or for something else?
For the IRS, you are only required to file a return if you have income or expenses, or the business is engaged in active and ongoing trade or business activities.
Your state might be asking for a registration fee, or they might be asking to see a tax return, or both. If you owe fees, you need to pay them, and then formally close the LLC, I suspect. For taxes, it should be sufficient to tell them that you never actually had any income or expenses. You might have to send copies of your federal tax returns showing that you did not include your business on your tax return.
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