@sethoffreshair wrote:
I was going to let the LLC lapse at the end of this coming year. Do I have to file taxes from 2024 if there was no money in and no money being spent on it?
Let me be clear about federal vs state.
The IRS wants to see a tax return if there is ongoing business activity (the business is actively engaged in trade or whatever the business is supposed to do). Whether you make a profit or loss, if you are engaged in ongoing activities and have revenue or expenses, that needs to be reported on a tax return of some kind. (Exactly how an LLC files depends on the organization and what you have done in the past--in most cases, a single member LLC that has not filed to be treated as an S-corp will file as a disregarded entity on schedule C.
Even if you have no ongoing business activities, you may need to file a final return to close the business especially if you have any assets that you listed for depreciation. You need to record how you dispose of those assets (sell, give away or convert to personal use) and that can in some cases create some taxable business income. If you are working with an accountant, they really should be able to tell you.
Separately, your state may have filing requirements for the LLC, not necessarily a tax return, but there may be other reports, forms, or registration fees that need to be paid. Check with your local state laws or ask your accountant.
