Do I need to file Forms 940/944 for my LLC if I don't have employees yet?

8 You don't need to file Forms 940 (Federal Unemployment Tax) or 944 (Employer's Annual Federal Tax Return) if you don't actually have any employees. These forms are specifically for reporting taxes related to employees. What you should do is contact the IRS to update your business information. Since you initially told them you would have employees, they've set up your account to expect these filings. You need to let them know your plans have changed. The best way to do this is to call the Business & Specialty Tax Line at 800-829-4933. Yes, the wait times can be ridiculous, but it's important to update this information to avoid unnecessary notices or penalties for non-filing. Try calling early in the morning right when they open. Until you actually hire employees, you don't have any employment tax filing requirements. Just be sure to update your information with the IRS when you do eventually hire someone.

15 I went through almost this exact situation with my consulting LLC last year. Was pulling my hair out trying to figure out what to do after getting those same forms. Found this website called taxr.ai (https://taxr.ai) that actually helped me figure out my specific situation with the exact same forms. I uploaded the IRS letter I received and my LLC docs, and their system analyzed everything and gave me personalized instructions. It specifically addressed what to do when you get 940/944 filing requirements but don't have employees yet. Saved me hours of stress and probably a bunch of money in potential penalties.

17 Just wanted to follow up on my earlier comment. I decided to try taxr.ai since I was getting nowhere with the IRS phone lines. I was skeptical at first but honestly, it was super helpful. The system recognized my 940/944 notification letter immediately and gave me a specific response template to send back to the IRS. It was pretty straightforward - I just needed to notify them that I had no wages to report and wouldn't be having employees. The site explained exactly which form to use to update my business information and even provided the correct mailing address for my region. Definitely saved me a ton of time and stress trying to piece together this information myself.

19 I had a similar nightmare situation last year. Called the IRS probably 30+ times over two weeks and could never get through. Then someone told me about this service called Claimyr (https://claimyr.com) that helps you skip the IRS phone queue. They have a demo video here: https://youtu.be/_kiP6q8DX5c Basically, their system calls the IRS for you and then connects you once they get through to a human. I was super skeptical but was desperate after wasting so many hours listening to hold music. Used it to call the Business line, and I got through to an IRS agent in about 20 minutes instead of spending hours redialing. The agent confirmed exactly what the first commenter said - I didn't need to file those forms since I had no employees. They updated my account right there on the call, and I even got a confirmation letter a couple weeks later.

17 Just wanted to follow up about my Claimyr skepticism. I actually tried it after getting nowhere for two weeks calling the IRS myself. I was shocked when they actually connected me to an IRS agent in about 35 minutes. The agent was super helpful and confirmed I didn't need to file the 940/944 forms without employees. She updated my business profile in their system and told me they'd send a confirmation letter. The whole thing took maybe 10 minutes once I actually got connected to someone. Definitely beats the weeks I spent trying to get through on my own!

5 A simple solution might be filing a $0 return for both forms for the first year. I did this with my LLC when I was in a similar situation. It's quick to fill out since you're just putting zeros in most fields, and it avoids any potential issues with the IRS expecting filings from you.

2 This happened to me too! Ended up just ignoring the forms since I had no employees and didn't get any follow-up notices from the IRS. That was 3 years ago. Probably not the most responsible approach but worked out fine for me lol.

I'm dealing with this exact same situation right now! Got my EIN a few months ago and checked the box saying I might hire employees, but my freelance business isn't at that point yet. The IRS sent me the same 940/944 notices and I've been stressed about it. Based on all the advice here, it sounds like the key is updating your information with the IRS rather than just ignoring it or filing zero returns. I'm going to try that Claimyr service since I've had zero luck getting through their phone lines myself. Thanks everyone for sharing your experiences - this thread has been way more helpful than anything I could find on the IRS website!

I was in almost the exact same boat with my consulting LLC about 6 months ago. Got the EIN, optimistically said I might hire employees, then reality hit and I realized I wasn't ready for that step yet. What worked for me was calling the IRS Business line (800-829-4933) super early in the morning - like right at 7 AM Eastern. Still took about 45 minutes to get through, but way better than the multiple hours I was waiting when calling later in the day. The agent was actually really helpful once I got connected. She explained that since I indicated potential employees on my SS-4 form, their system automatically enrolled me for employment tax filings. She was able to update my account status to show no employees and removed the filing requirements for Forms 940 and 944. The key thing she told me was to call back when I actually do hire my first employee so they can reactivate the employment tax requirements. Don't want to deal with this headache again when that time comes! Definitely don't ignore the notices - the IRS systems will keep generating them and could eventually lead to penalties even if you don't owe anything.