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

[badams_taxes]

Good Afternoon,

I own a Limited Liability Company (LLC) that provides home improvement services. My husband used to handle all the work but now works full-time for an employer and does not have time to do any home improvement work.

Is there a place on the tax form to indicate no work for the year, or should I not submit any business forms?

Thank you,

BAdams

[DianeW777]

It depends.  If there was no income, then it's likely a return is not required, however you should check to be sure, depending on whether it's a partnership, s-corporation or a single member limited liability company (SMLLC) which is disregarded for federal purposes and entered on your personal return. The latter would not require any entry unless the business need to be removed from your return for 2023.

The state requirements may be different depending on your state.

Please update here with more details if you have additional questions.

[badams_taxes]

Good Afternoon,

There was no income for the Limited Liability Company (LLC) business in Maryland. I am the owner, but my husband does the labor. I am considered a single-member limited liability company, which I enter on my personal tax return.

Please clarify what is meant by "the latter would only require entry if the business needs to be removed from your 2023 return. Can I file without including my business information?

Thank you,

BAdams

[ThomasM125]

Yes, you can file without including your business information. You would need to go into the business section of your return and indicate that the business had been disposed of. First, you would update the business profile on the screen that says Your (name of business) Business:

On the next screen, you would indicate that the business was disposed of by editing that entry:

On the next screen, you would indicate that you disposed of the the business:

[badams_taxes]

Good Morning ThomasM125 (Employee Tax Expert),

Thank you very much for the screenshots of the "Business Section/Business Profile" process, which show that the business has been disposed of.

But if I "indicate that the business had been disposed of," does that imply that I discontinued the business operations?

If that is the case, I have discontinued the business; this was simply a year without any services.

Does this imply that the IRS will view the business as a hobby?

Thank you,
BAdams

[badams_taxes]

Good Afternoon,

Thank you very much for the screenshots of the "Business Section/Business Profile" process, which show that the business has been disposed of.

But if I "indicate that the business had been disposed of," does that imply that I discontinued the business operations?

If that is the case, I have discontinued the business; this was simply a year without any services.
Does this imply that the IRS will view the business as a hobby?

Thank you,
BAdams