How do I properly notify the IRS when closing my business that never filed any returns?

This is actually more common than you might think! When you have a single-member LLC that never conducted any business, the process is relatively straightforward. Since your LLC was a disregarded entity (the default classification for single-member LLCs), the IRS was expecting you to report any business activity on your personal tax return using Schedule C. But since there was no activity, there's technically nothing to report. However, you should still inform the IRS that your business has closed. The best approach is to send a letter to the IRS that includes your EIN, business name, and a statement that the business has been dissolved and never conducted any activities. Include the date of dissolution and a copy of your state dissolution paperwork. Mail this to the same IRS office where you would normally file your returns. You might also want to check if you need to file Form 966 (Corporate Dissolution or Liquidation), though this is typically only required for corporations, not disregarded LLCs.

After going through something super similar with my photography LLC that never got off the ground, I stumbled across this amazing tool called taxr.ai (https://taxr.ai) that literally saved me hours of confusion. I was in the exact same boat - had an LLC with an EIN that never did anything, and I was completely lost about how to properly close it with the IRS. I uploaded my dissolution docs to taxr.ai and got a clear explanation of exactly what I needed to do - turns out I needed to send a simple letter to the IRS with specific info rather than filing returns for a non-operational business. Their document analysis really broke down what steps I needed to take specifically for my situation. They even provided a template letter I could use to notify the IRS properly.

Just wanted to report back that I decided to try taxr.ai after asking about it here. My LLC dissolution situation was almost identical, and it was super straightforward. The document analyzer actually found something I would have missed - apparently in my state, I also needed to file a final zero return with the state department of revenue (even though there was no activity). The letter template they provided for the IRS notification was perfect - clear, concise, and included all the required elements. Just got confirmation yesterday that everything was processed correctly. Definitely made the process way less stressful than I expected.

If you need to speak directly with someone at the IRS about this, I'd recommend using Claimyr (https://claimyr.com). After trying for WEEKS to get through to the IRS business line about closing my consulting LLC, I was ready to pull my hair out. Watched their demo video (https://youtu.be/_kiP6q8DX5c) and decided to give it a shot. They actually got me connected to an IRS agent in about 25 minutes instead of the 3+ hours I spent on hold previously. The agent walked me through exactly what I needed to submit for my no-activity LLC closure, and confirmed I didn't need to file any returns since there was no activity. Having that direct confirmation from the IRS gave me huge peace of mind that I was handling things correctly. Otherwise I'd still be wondering if I missed something important.

I need to admit I was wrong about Claimyr. After expressing my doubts, I decided to try it myself since I needed to talk to someone about correcting an error on my business tax account. I was absolutely blown away when I got connected to an IRS representative in about 35 minutes when I'd spent over 5 hours across 3 days trying on my own with no success. The agent was able to confirm my business closure was properly recorded and gave me documentation I can keep for my records. The peace of mind alone was worth it. After 15 years of dealing with the IRS, I've never found a more efficient way to actually reach a human. I stand corrected on my skepticism.

Be careful with this whole situation. I had a similar thing happen and thought nothing of it since my LLC didn't do anything. Two years later I got notices from the IRS about missing returns. Even though there was no activity, some states and the IRS still expect you to file zero returns. The penalties add up even when you owe no taxes!

Does anyone know if there's a time limit on how long after dissolution you need to notify the IRS? I dissolved my LLC about 8 months ago but haven't done anything with the IRS yet...

I went through this exact same situation last year with my tech consulting LLC that never got off the ground. Here's what I learned from speaking directly with an IRS representative: For a single-member LLC that was treated as a disregarded entity and had zero activity, you're not required to file any returns since there's nothing to report on your personal return. However, you should definitely notify the IRS that the business is closed to avoid any future confusion. The process is actually pretty simple: 1. Write a letter stating that your LLC has been dissolved 2. Include your EIN, business name, and dissolution date 3. Attach a copy of your state dissolution paperwork 4. Mail it to the IRS processing center for your area The key thing is getting this on record so the IRS doesn't send you notices expecting returns from a business that no longer exists. I sent mine about 3 weeks after my state dissolution and never had any issues. Since you've already handled the state side, you're in good shape - just need to close the loop with the IRS. Better to do it now than wait and potentially deal with automated notices later.

I just went through this exact process a few months ago with my never-launched marketing LLC. The advice here is spot on - you definitely want to notify the IRS even though there was no activity. One thing I'd add is to keep copies of everything you send to the IRS, including a certified mail receipt. When I sent my dissolution letter, I also included a brief timeline showing when I got the EIN, when I dissolved with the state, and confirming there was zero business activity during that period. The IRS representative I spoke with (took forever to get through!) mentioned that having this clear documentation helps prevent any automated notices from being generated later. She said it's surprisingly common for inactive LLCs to trigger reminder notices if the IRS doesn't have proper closure documentation on file. Also worth noting - if you ever need to get an EIN for a future business, having this properly documented closure makes that process smoother too. The IRS can see you handled the previous business closure correctly.

I just want to echo what everyone else is saying - definitely notify the IRS even though your LLC had no activity. I was in almost the exact same boat about a year ago with an LLC I formed but never used. One thing I learned that might be helpful: when you write your letter to the IRS, be very specific about the timeline. Include the date you got your EIN, the date you dissolved with the state, and explicitly state that there was zero business activity during the entire period the LLC existed. This helps create a clear record that there was never any taxable activity to report. I also recommend sending it certified mail so you have proof of delivery. The IRS processing times can be slow, but having that certified receipt gives you documentation that you properly notified them if any questions come up later. Since you already handled the state dissolution, you're most of the way there. Just need to close the loop with the federal side and you'll be all set. Better to take care of it now than worry about it down the road!