Is Tax Filing required?

[rishikapoorpcmon]

I incorporated my business in 2016 but did not earn any revenue. Do I need to file the taxes?

[Kadian · Accepted solution]

Depending on your filing status and the amount of income you made during the year, you may not be required by law to file a return with the IRS. However,even if you do not have to file, it may still be in your best interest to submit a tax return.

https://ttlc.intuit.com/replies/3302274

[rishikapoorpcmon]

Thank you for the response! My question is more specific to corporate tax and not individual tax. Do I need to file the taxes for my business if I did not earn any revenue?

[Kadian]

If you formed an LLC and you are the only member and did not choose to be taxed as a corp, then IRS  will treat the LLC as a "dis-regarded entity"  for tax purposes. Which means you file only a schedule-C or C-EZ to report the incomes and expenses of the business and pay Self-employment taxes in addition to federal taxes on the net income, this will all be a part of your personal return. So if you have zero gross income  & no expenses from the business, there is really no requirement to report anything on schedule-C.

However, if you chose to be taxed as a partnership or a corp, then you should file a return for the LLC even if you had zero gross income and no expenses. You choose on how to be taxed on your first return for the LLC. and this remains valid essentially for the life of the LLC ( can change with IRS agreement ).

[rishikapoorpcmon]

Thank you for the response! One more question!! My company is incorporated and we are a total of 3 directors and have not earned anything. Do we have an option to file the taxes next year as we did not have any revenue or expenses for the last business year?

[MargaretL]

All corporate entities are required to file a corporate tax return, even if they do not have any income. You do not have an option to file taxes next year, you must file a corporate tax return each year. As to your personal return, you obviously will have no income/expenses to report based on your share, and if that is your only source income, you are not required to file a personal return (as Kadian explained above),  but the corporate return must be filed regardless.