if audited and the business was deemed a hobby, the IRS could disallow expenses for the past open years.
no schedule C. hobby income (no expenses) is reported as misc income on schedule 1.
the state does not require cancellation because it's a hobby. the issue is that many states charge substantial LLC fees each year. if your state does then you'll have to pay the fees each year to keep it alive. every state has different rules but failure to pay results in termination after so many years. Though many allow reinstatement if past fees + penalties are paid.
