LLC no income - FILE?

[slara22]

Hello - I have W2 income, my husband has self employment income, and I just started a single member LLC in MA, in July 2024. There was virtually no business activity in my LLC and it has $0 income. I don't have a home office yet either. Two questions:

1. Do I need to file a Schedule C for my new LLC, along with our taxes, with $0 income? I am ok doing this, wondering if it would be strange or unnecessary to do so.

2. For next year - I am considering actually closing my single member LLC  - I've had no time to work on it and just the yearly fee is $520. If I have the time to do any self-employment business on that end, I would just do it as a sole proprietor.  Is there any negative implication to this? Bets way to proceed?

Thanks!

[MaryK4 · Accepted solution]

If you had no LLC activity, you ar not required to file a Schedule C for it.  If you decide not to pursue the business and never included it on your tax return, there is no negative impact or requirements.  

[slara22]

Thanks so much!

[slara22]

A hopefully quick follow-up question:  I understand I do not need to file a Schedule C for my single member LLC with no activity. But wqould I have to file something for the state of MA where it is registered?

Thanks in advance!

[PatriciaV]

Massachusetts requires every LLC to file an annual report with the Massachusetts Secretary of State (SOS). The annual report will include the same information as the LLC's certificate of organization. You must confirm or update the business information.

[slara22]

Thanks! Yes, MA has an annual report and payment for LLC's to continue, but I understand that is separate from the filing of my taxes. Correct?

Just wondering....I will not file a Schedule C for my new single member LLC that had no expenses/income. But should I file something in the state of MA section with my taxes (e.g., a schedule C equivalent for the state of MA?)

Thanks!

[Vanessa A]

No.  You do not need to File a Schedule C for MA.

LLC's in MA are treated the same way as they are for federal tax purposes.  This means, if you did not have any business income or expenses you would not file a Schedule C for MA, the same as you would not for the federal.