C-corp tax question?

Question

if I formed a c-corporation last year but did absolutely nothing with it, do I need to file a return?

Answer 1

Yes you must file a return for each and every year that the C-corp is in existence. And most states will want something in the range of $150 to $800 for the privilege of having a C-corp in their state. I hope that all of you that want to run out and form an LLC, S-corp or C-corp for your small business are reading this. And don't forget that you will be able to pay your CPA something between $200 and $800 to file that for you because Turbo Tax can not do it. So if you have not been paying attention that is some where between $350 to $1,600 for an activity that had zero ($0) income. And you likely paid a couple of grand to somebody to do this to you.

Answer 2

Yes. A return is required every year whether you do any business or not. Additionally if your state has an income tax on corporations there may well be a minimum corporate tax due even if you have no income to report. Depending upon the state this typically ranges between $150 and $800 per year.