A limited liability company could be without zero business activity for some years. Newly developed LLCs may not start operating as a business for one or more years, and older LLCs could become irrelevant without being correctly dissolved.

Filing taxes for a Limited Liability Company with no income depends on the way your LLC is taxed. It can be either taxed as a partnership, corporation, or sole proprietorship. An LLC that has become inactive or does not have income may have to compulsorily file a federal income tax return. Let us look more at filing taxes for LLC without any activity.

Savvy and suite is a leading place to fulfil your diverse planning and compliance requirements in the business. The company has an in-depth understanding of the internal operations of an LLC. They use this knowledge to ensure that your business is up to snuff in the tax arena. Their assistance helps its clients to save from headaches and hefty tax bills.

Filing for an LLC Partnership

To understand filing for an LLC partnership, you need to understand LLC partnership taxes. An LLC is taxed in the form of a partnership and it will have to file an informational partnership return. It is exempted to pay taxes only when it hasn’t had any expenditure that it can claim in the form of credits and deductions and didn’t obtain any income in the entire year.

To simply the concept, an LLC that is taxed in the form of a partnership, without any kind of business activity, doesn’t have to submit a partnership return except when it has expenses or credits that the LLC would want to claim.

Filing for a Limited Liability Company

Let us how to file taxes for LLC that made no money. In such a case, Corporations are obligated to file a federal tax return yearly. It has to be done even if they have not made any income. Due to this reason, when any LLC declares itself as a corporation and decides to be taxed in the same way, they will have to submit a yearly tax return in perpetuity.

It is also important to understand that the LLC may require filing a federal tax return when there is no business activity. It solely relies on the tax filing status of LLC. Ensure that you file LLC quarterly taxes and annual taxes on time to avoid any form of fines and penalties.

Is it necessary to File a Separate LLC Tax Return?

LLCs are generally registered with the states where they have incorporated. Due to this reason, they are not required to file any federal tax returns unless they have themselves decided to file in the form of a corporation. If they have opted to file in that way, they will be bifurcated into any one of the below categories:

• Single-member LLC taxes form Schedule C, and • Multi-member LLC filing Form 1065


The filing needs of an LLC are majorly dependant on the way it has been taxed. There are possibilities that an LLC could be removed as an entity for tax-related purposes, or it could be taxed as a partnership or corporation. The above information will help understand your LLC needs and arrive at the right conclusion of the way it has to be taxed.