Limited Liability Company (LLC) But No Work for Tax Year 2023

[badams_taxes]

Good Morning,

I am the sole owner of a Limited Liability Company (LLC) specializing in home improvement services. Unfortunately, due to my husband's full-time job, he could not provide any services last year for this year's tax return.

This business has yet to be disposed of or discontinued; this was a year without any services.

Please let me know if I still need to complete Form 2106, Employee Business Expenses, Form Schedule C, Profit or Loss from Business, or any other tax forms to complete my 2023 Tax Return.

In addition, does this suggest that the IRS will regard the business as a hobby?

Please advise,
BAdams

[KrisD15]

There would be no Form 2106, that is only used by an EMPLOYEE, not a business owner. (Additionally that Form has been restricted for tax year 2023)

Continue using Schedule C to report the business even if there was no income for 2023 if you intend to continue services in the near future. 

You might have "assets" such as machinery and tools which need to be listed on your schedule C and continue to depreciate. 

You might have a vehicle, which had no expenses if it was not used for business, but you might want to keep it "on the books". 

No, the IRS will not label this a hobby unless you continually claim a loss for the business year after year.