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Formed an LLC in Dec 2023, no revenue yet, do I need to file a tax return?

I formed an LLC in Dec 2023 so that I could take advantage of Assembly Bill 85 that provides a first-year exemption from the $800.00 annual tax to limited partnerships, limited liability partnerships, and limited liability companies that organize or register with the California Secretary of State on or after January 1, 2021, and before January 1, 2024. My business has not gone live yet, so I have no revenue/sales and probably won't until 2025. 

My questions are: 

1) Do I still need to file a tax return/include the LLC on my personal tax return for 2023 (seems silly to even ask but...)? 
2) Do you know if the $800 waiver would be applied to 2023 or my first "full year" in operation (so, 2024)?

Thanks
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1 Reply

Formed an LLC in Dec 2023, no revenue yet, do I need to file a tax return?

1. For IRS (federal tax) purposes, you don't file until the business is an active and ongoing venture.  You don't need revenue (for example, you might have startup expenses but not been paid yet), but if you are not yet actively pursuing profit-making activities, then you don't file for 2023.

 

2. You will need to check with the state.   LLCs are created by state law, and must follow those laws. Once you register the business, you may have state requirements even if you don't have federal income tax requirements. 

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