How do I correctly file my taxes for a business that was administnatevly dissolved in Dec. ‘25 but I will reinstate next month? Do I check yes it stopped business in 2025 box or select no since it didn’t and won’t stop business?

[Em_37]

My LLC in NC was adiminstrativly dissolved in Dec 2025 because I forgot to file the annual report in time. I plan to file for reinstatement over the next couple of weeks but want to get my taxes done and filed this week. The reinstatement process could also take several weeks. How do I go about answering the question that asks if the business stopped business during the ‘25 year? It didn’t but the state did dissolve it. 

[CesarJ · Accepted solution]

You should answer No to the question asking whether the business stopped operating in 2025.  Even though North Carolina administratively dissolved the LLC, the business never stopped operating. 

You should file your 2025 return as usual, reporting all income and expenses. Once the reinstatement is approved, it restores the LLC as if the dissolution never happened for state-law purposes. This doesn't change how the IRS treats your tax filing.