I started an LLC this year, but did not produce any revenue, do I still have to file a tax return?

Answer 1

Short answer? No. But you should because the IRS likes it when you do. They prefer to see the business continuity that an LLC should have.

Do you have to? No. You don't "have" to file a tax return for yourself either. After all, you might slip through the cracks. However, chances aren't very good that you will, and you probably should file the return.

The LLC is a wonderful invention by the swamis of the business formation world. The IRS considers it a "non-entity", which is a rarity. With it, you get limited liability and can file the LLC's return as a C Corporation, S Corporation, Partnership, or as a Schedule C. Of course....once you pick one, it's probably a good idea to stick with it, since the IRS doesn't like to see differing forms of a business in consecutive years.

I obviously don't know all the facts of your case, but it seems like you should file as a Schedule C business to allow you to take your business expenses as a Sch C loss to lower your AGI.

Answer 2

If you are a Single Member LLC and didn't opt to file as a corporation for tax purposes, you can file federal form Sch. C.

Now, the beauty of this is, even though you didn't have any income, you may have business expenses that you can write-off.

By doing so you could reduce your taxes or increase your refund-if that applies.

In other words, even though you may not have to file, it may benefit you to file anyway.

Answer 3

It would be best to file a return. If there was no revenue, just put "dormant" or "inactive" on the return.

Answer 4

Yes. Fines are REALLY steep for not filing.

Answer 5

Yes.

Answer 6

yes, if you had expenses you will need to file to take the loss.