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Written by : Mercy Golen
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hey guys this is robert with malaya law we help entrepreneurs just like you start their businesses without dealing with the complicated legal forms we are also the number one highest rated business law firm for entrepreneurs with more than 1 500 five-star google reviews today we are going to talk about whether you need to file a tax return for your llc if you are not conducting business that year so i'm sure many of you guys have started an llc and realized that you have a lot of work to do before you can collect payments or make money and when this happens you are likely wondering whether you have to file a tax return even though your business made no money that year first i would like to inform you though that i am not an accountant and this is not accounting advice you should reach out to a to an accountant or a professional to get your tax questions answered and what i say in this video is very general information and may not apply to your particular situation but with that being said it is possible that your llc will still be required to file a tax return even though it was inactive that year or did not make any money that year so ultimately it all depends on whether your llc was taxed as a partnership a disregarded entity or a corporation so it basically all boils down to how your llc is being taxed so if your llc is a disregarded entity then you are required to report any income on your personal tax return and there is likely little to no extra filings that you have to do other than your regular personal tax return the llc's income and expenses are reported as self-employment income on the schedule c of the llc member's personal tax return you will be required to file this schedule c if your llc made more than four hundred dollars for the year if you made less than four hundred dollars and you do not have any expenses that you would like to deduct then you will not have to file a schedule c however if the llc has more than one member then the llc will automatically treat it as a partnership or instead of being taxed as a partnership you may elect for it to be taxed as a corporation so check your documents to see how your multi-member llc was registered and taxed if the llc was formed and it was automatically designated as a partnership then the llc will have to file a partnership tax return regardless of how much money you made additionally each member of the llc will have to also report the income on his personal tax returns so ultimately the llc must file a partnership tax return on tax form 1065 unless it did not receive any income that year and you do not have any expenses that you plan to write off or claim as a deduction or credit so in summary if your llc was taxed as a partnership and made no money and did not have any expenses that you plan on writing off then the llc probably does not have to file a partnership tax return now if your llc filed form 8832 with the irs which is the document that you must file to have the llc taxed as a as a corporation then the llc is required to file a tax return even if it made no money and no business was engaged in so overall it is likely that you will have to file a tax return or deal with something related to taxes even if your llc did not make money that year and despite having little to no income i always recommend that you speak to a tax professional who can advise you and handle your taxes for you so uh yeah i understand that starting a business can be challenging and many entrepreneurs let the fear stop them from continuing or moving forward but don't let that be you click on the link below to schedule a free consultation with us to discuss your legal needs and while i can't give you tax advice i can provide you with legal advice on how to start your us business and i can put you in contact with other professionals who can help you if i'm not able to do so so click on the link below to schedule a free consultation with me or my team and we will be able to help you grow your business and launch your us business without having to deal with the complicated legal forms and yes so go ahead and click the link below and also if you have any questions just post them in the comments below and my team and i will try to get to them as soon as we can see you guys in the next video bye-bye
Thanks for your comment Abel Freudiger, have a nice day.
- Mercy Golen, Staff Member
congratulations on wanting to start a new business so i don't want to see you paying for these things even though others try to upcharge you so you can get an ein an employer identification number for free also you can file your llc as s-corp status for free and that's a special tax status that you can get that can save you a lot of money down the line also banking resolution templates you can find that online as well as the banking resolution templates you can find business contract templates as well as the operating agreement online plus the business plan which is going to help you get everything organized so get your free things don't pay for them and thanks for coming to darcy's business
Thanks guri2 your participation is very much appreciated
- Mercy Golen
About the author
I've studied economic sociology/socioeconomics at Beulah Heights University in Atlanta and I am an expert in ecology (outline). I usually feel drunk. My previous job was computer security specialist I held this position for 28 years, I love talking about aquascaping and snowshoeing. Huge fan of Jill Morrison I practice snorkeling and collect stamps.
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