Single Member LLC with nothing in it

[myraccoon]

I opened up two LLCs in 2022 with the intention of holding rental properties but I had not finished acquiring properties.  Thus both LLCs are empty in 2022.  Do I have to file anything regarding these LLCs on my return?

[AmyC · Accepted solution]

It depends on what you originally selected. You can look at your EIN letters to see what you did.

If you selected sole proprietor, you would use the sch C and it is not necessary until the business begins. However, rental properties go on sch E unless you are providing substantial services like a hotel.

Perhaps, you elected to be an S corp which includes rental properties. An S corp must file every year regardless of income and activity.

If you selected sole proprietor but meant to choose S corp, you can make the election to change.

Please learn more about business options and requirements at the IRS website: Small business