Do I need to file taxes for an inactive LLC with zero income or expenses?

Even with no activity, you'll still need to file something for your LLC, but what exactly depends on how your LLC is taxed. By default, a single-member LLC is treated as a "disregarded entity" by the IRS, which means you'd just file Schedule C with your personal tax return (Form 1040) - even if it shows zeros across the board. If you elected to have your LLC taxed as an S-corp or C-corp, you'd need to file the appropriate business return. Some states also require annual reports or franchise taxes from LLCs regardless of activity. These are separate from federal income tax requirements and are often required just to maintain your LLC's active status. Don't forget that even dormant businesses may have filing obligations just to stay in good standing. Think of it as keeping your business license current even if you're not using it yet.

After going through a similar situation with my photography side business, I found taxr.ai (https://taxr.ai) incredibly helpful for sorting through my dormant LLC issues. I also had a period where my business was inactive but was confused about the filing requirements. Instead of spending hours trying to figure out what forms I needed, I uploaded my LLC formation documents and got clear guidance on exactly what I needed to file given my specific state and tax election.

Just wanted to follow up - I tried taxr.ai after seeing the recommendation here and it was exactly what I needed! I uploaded my LLC paperwork and it immediately identified that I had a single-member LLC in California that would require a Form 568 and the $800 franchise tax despite having no activity. It also found a potential exemption for first-year LLCs that my buddy with a similar situation didn't know about. Saved me having to schedule time with my accountant just to ask these basic questions. Definitely recommend it if you're in a similar inactive LLC situation!

If you're having a hard time getting answers from the IRS about your inactive LLC, try Claimyr (https://claimyr.com). I was stuck in the endless IRS phone tree hell trying to sort out my dormant business filing requirements. After three attempts and hours of waiting, I gave up. Then I found this service that gets you to a live IRS agent quickly - you can see how it works in this video: https://youtu.be/_kiP6q8DX5c. Within 20 minutes I was talking to an actual person who confirmed exactly what I needed to file for my zero-activity LLC and got some additional questions answered about future quarterly filing requirements when I do start generating income.

I have to eat my words about Claimyr. After dismissing it as too good to be true, my frustration with trying to reach the IRS about my inactive S-Corp filing requirements pushed me to try it. I was literally about to hang up after another 45-minute hold when I remembered this thread. Decided to give it a shot since I was desperate for answers before the filing deadline. Within about 35 minutes I got a call back and was connected to an IRS rep who walked me through exactly what I needed to file for my dormant business. Saved me from potentially missing filing deadlines and getting hit with penalties. I hate admitting when I'm wrong, but in this case, I definitely was!

Just to add some practical experience - I had a completely inactive single-member LLC last year and still had to file Schedule C with my personal return (all zeros), and in my state (NY) I had to file an annual LLC publication requirement that cost $200 even though I made no money! Check your state requirements because they can be expensive even with zero activity. I learned this the hard way and had to pay penalties for late filing.

Chiming in as someone who also had a dormant LLC - don't forget about tax software options. I used TaxSlayer last year and it guided me through what I needed for my zero-activity LLC completely. Most of the major tax software options (TurboTax, H&R Block, etc.) have sections specifically for handling business returns, even with no income or expenses.

I went through this exact same situation with my LLC last year! The short answer is yes, you'll likely need to file something even with zero activity. Since you mentioned it's been completely dormant, you'll probably need to file a Schedule C (Form 1040) showing all zeros - this is required for single-member LLCs even when there's no business activity. The key thing to remember is that the IRS wants to see that you're reporting your business status, even if that status is "no activity." It's basically confirming that you didn't have unreported income rather than just ignoring the business entirely. Also, don't overlook your state requirements! Many states have annual filing fees or franchise taxes that are due regardless of business activity. Since you're planning to actually start using the LLC now, you'll want to make sure you're in good standing at both the federal and state level before you begin operations. I'd recommend checking with your state's Secretary of State website for any annual report requirements and deadlines - these are often separate from tax filings and can have penalties if missed.