Regarding Sole proprietor Taxes & Do i have to File a $0 return?

[warith3140]

On my 2019 taxes, I posted on my tax return, under a new EIN, some additional income. The EIN was registered as sole proprietor single member LLC (unlike my other businesses which are partnerships), additionally the EIN was not registered with my state. Now, if the income for that EIN is $0 for the tax year 2020, with no gains, no loss, no business, will I be required to file taxes for it and mark it $0 (for the year 2020)?

[DianeW777 · Accepted solution]

If the single member limited liability company (SMLLC) had no business, and received absolutely no income (before any expenses) then you do not have to include that business in your tax return. If you have depreciable assets associated with that business, then they would be taken out of service for the year if no activity occurred. 

If you have business activity in 2021 you can add that back to your return at that time.  Keep good records with your tax records to show why it was not included in 2020.

[warith3140]

Thank you so much Dianne! I really appreciate the answer 🙂