Hi, @skck8287 , thanks for the question! Since you didn't state otherwise, I'm assuming that this is a single-member LLC that you have been reporting on your personal tax return as a sole proprietorship; that is to say, that you have not chosen to be taxed as a corporation. Yes, it is very likely that the IRS will consider this activity a hobby after three consecutive years of losses. I'm not clear if the business had no income at all, or just no IL-sourced income. If the business had no income and no deductible losses, then it need not be filed if my above assumption is correct. A single-member LLC is what's called a "disregarded entity", meaning that as far as the IRS is concerned, your filing requirements are no different than any other sole proprietor.
Hope this helps!
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