How do I file taxes for an unused LLC I created and want to close?

Thanks for the info! Quick question - if I registered the LLC in December but never did anything with it, do I still need to file a Schedule C for last year? Also, is there a fee for dissolving an LLC or is it just paperwork?

Yes, you should still file a Schedule C even if you registered in December and had no activity. This establishes a paper trail showing you properly reported the entity from the beginning. Regarding dissolution fees, it varies by state. Some states charge a filing fee for dissolution documents that can range from $25 to $100 or more. Check your specific state's Secretary of State website for the exact fee and required forms. Some states also have publication requirements where you must announce the dissolution in a local newspaper, which can add additional costs.

Did you actually use taxr.ai for this? I'm wondering how the process works. Do you upload documents or just describe your situation? I have a similar issue with an LLC I created for a consulting gig that fell through.

How does taxr.ai compare to just using regular tax software? I'm using TurboTax and wondering if it would handle this LLC situation or if I need something more specialized.

For the document process, you can either upload documents or just describe your situation in detail. I uploaded my LLC formation documents and described that I had no actual business activity, and it helped identify exactly what I needed to file both federally and for my state. As for comparing to regular tax software, the main difference I found is that taxr.ai gave me specific guidance for my situation rather than just generic prompts. TurboTax will work, but I found it kept asking business questions that weren't relevant to my dormant LLC, while taxr.ai immediately recognized my situation and provided targeted advice.

Wait, so this service actually helps you get through to government agencies faster? How does that even work? I've been on hold with my state's business division for what feels like forever trying to figure out how to properly close my LLC.

This sounds too good to be true. I've been trying to reach my state's tax department for THREE WEEKS about dissolving my LLC. You're telling me this service actually got you through? I'm skeptical but desperate at this point...

The service basically calls the agency for you and navigates the phone tree until they reach a human. Then they call you and connect you directly to that person. It saves you from being on hold forever. I was skeptical too! I had spent hours on hold with my state tax department and kept getting disconnected. Claimyr got me through to a real person who explained exactly which forms I needed and confirmed I didn't need the tax clearance certificate in my specific case since the LLC had never operated. Saved me hundreds in unnecessary accountant fees.

Omg I didn't even think about state requirements! Do you know if Texas has any minimum fees for LLCs that didn't operate? And if I dissolve it now, would that prevent me from owing anything for 2023?

Texas is actually one of the better states for this situation. They don't have a state income tax, and while they do have a franchise tax, there's an exemption if your revenue is below a certain threshold (currently $1.23 million), so an inactive LLC would be exempt from the franchise tax filing requirement. As for dissolving it now, yes, that should prevent you from owing anything for 2023, but you'll still need to make sure you properly close it out with the Texas Secretary of State. The filing fee for a Certificate of Termination in Texas is $40. Do it as soon as possible to avoid any potential complications for the current year.

I dissolved my LLC in Florida last year without a lawyer. It was pretty straightforward - just filed the Articles of Dissolution form (search for form "LLC Dissolution" on sunbiz.org) and paid the $25 fee. Make sure your annual report is filed first and that you don't have any outstanding tax obligations. The whole process took maybe 20 minutes online plus a few weeks of processing time.

This is really helpful documentation advice! I'm definitely going to keep everything organized in case there are questions later. Quick follow-up - when you mention including a statement with the return, do you just write it on a separate piece of paper and attach it, or is there a specific form section where explanatory statements go? I want to make sure I do this right since my LLC situation is pretty similar to the original poster's.

For explanatory statements, you typically just attach a separate sheet of paper to your return with a clear heading like "Statement Regarding [LLC Name]" and then explain the situation in plain language. There's no specific IRS form for this - it's just additional documentation. Make sure to include your name, SSN, and the tax year at the top of the statement, and reference which schedule or form it relates to (like "Attached to Schedule C"). Keep it brief but clear - something like "XYZ LLC was formed in December 2023 but conducted no business activities during the tax year. No income, expenses, or business transactions occurred." This creates a clear paper trail showing you properly disclosed the entity's existence and inactivity.