What if I started an LLC but had no income? Do I n...
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cpetre
New Member

What if I started an LLC but had no income? Do I need to file?

 
4 Replies
tagteam
Level 15

What if I started an LLC but had no income? Do I need to file?

That depends.

 

If you have a single-member LLC and had no income or expenses, you do not need to file a Schedule C for the LLC.

 

If you have an LLC with an election to be treated as a S or C corporation, then you would be required to file an 1120-S or 1120.

 

If you have a multi-member LLC (treated as a partnership by default) with no income or expenses, then you do not need to file a Form 1065.

Carl
Level 15

What if I started an LLC but had no income? Do I need to file?

If this is a single member LLC and you were "open for business" on or before Dec 31 of the tax year, then you are required to file a SCH C with your personal 1040 tax return. It doesn't matter if the business reports $0 income either.

Otherwise, if you were not "open for business" on or before Dec 31 of the tax year, you have absolutely nothing to report on SCH C and do not need to complete one.

 

tagteam
Level 15

What if I started an LLC but had no income? Do I need to file?


@Carl wrote:

If this is a single member LLC and you were "open for business" on or before Dec 31 of the tax year, then you are required to file a SCH C with your personal 1040 tax return.


If there are neither income nor expenses to report, there is no need (or requirement) to file a Schedule C.

Carl
Level 15

What if I started an LLC but had no income? Do I need to file?

Yes. My use of the word "required" is wrong there. Typically, and of course depending on the precise date the business was officially open, it's possible and somewhat probable the business incurred expenses that may not qualify as "start up" costs. But yes, for a single member LLC if you have no income or expenses to report, outside of startup costs, then there's really no need to file the SCH C.

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