topic I've been paying LLC fees for 10 years. I have had no LLC income for 3 years (got a W-2 job). Can I still deduct that LLC fee? in Business & farm

I've been paying LLC fees for 10 years. I have had no LLC income for 3 years (got a W-2 job). Can I still deduct that LLC fee?

roastm — Thu, 25 Feb 2021 18:31:17 GMT

I've been paying LLC fees for 10 years. I have had no LLC income for 3 years (got a W-2 job). Can I still deduct that LLC fee?

Re: I've been paying LLC fees for 10 years. I have had no LLC income for 3 years (got a W-2 job)....

JeffreyR77 — Thu, 25 Feb 2021 18:46:52 GMT

It depends. If you still have a legal LLC entity then the LLC fee is a valid business expense. The IRS may challenge the viability of your LLC being a business if it does not have profit 3 out of 5 years and disallow the fees. If you have a business purpose to keeping the LLC open and paying the fees to keep it open then they are valid business expenses and deductible.

Re: I've been paying LLC fees for 10 years. I have had no LLC income for 3 years (got a W-2 job). Can I still deduct that LLC fee?

Opus 17 — Thu, 25 Feb 2021 19:48:04 GMT

You can only deduct the fee if you include a schedule C for the LCC (if it is a disregarded entity) or you file form 1065 (if it is a partnership). It would be a business expense, you would show no income and therefore a business loss, and the IRS might question it, as mentioned.

It is not deductible anywhere as a personal expense, such as schedule A or form 2106.