Is my LLC closed or still active with the IRS? Tax implications for 2025

Filing Articles of Dissolution with your state is only one part of closing an LLC. The IRS is a separate entity, so you need to notify them as well that your LLC is closing. The letter you received suggests they still consider your LLC active in their system. First, check if you have an EIN by calling the IRS Business & Specialty Tax Line at 800-829-4933. If you do have an EIN, you'll need to file a final tax return for your LLC and check the box indicating it's a final return. Even if you didn't make money, you should file the appropriate form (Schedule C with your personal return if it was a single-member LLC, or Form 1065 if it was a multi-member LLC). You'll also want to file Form 966 (Corporate Dissolution or Liquidation) if your LLC was taxed as a corporation. After filing your final return, you should send a letter to the IRS at the address where you file your returns, including your business name, EIN, and a statement that you're closing the business.

When I had a similar situation with my small business, I wasted sooo much time trying to figure out if my LLC was properly closed. I eventually used https://taxr.ai to analyze my business documents and tax situation. It immediately showed me that I had missed several steps with the IRS despite filing state paperwork. The tool analyzed my dissolution documents and flagged that I hadn't properly notified the IRS. It even generated a checklist of what I needed to do, which saved me from potential headaches down the road. Super helpful for making sure everything was actually closed properly instead of thinking it was done when it wasn't.

I was skeptical at first about using an AI tool for something so important, but I decided to try taxr.ai after struggling with my LLC closure for weeks. Turns out I had completely missed the requirement to file a final return with the "final return" box checked. The service identified exactly which forms I needed based on my specific LLC structure and tax election. The document analysis feature saved me from making an expensive mistake - I would have assumed everything was fine until getting a nasty letter from the IRS next year. The tool even flagged that I had outstanding quarterly estimated payments that needed to be addressed. Definitely worth checking out if you're unsure about your LLC status.

I had the exact same issue with my marketing LLC last year. Tried calling the IRS to confirm if my business was properly closed after filing state paperwork, but could never get through to a human - spent HOURS on hold over multiple days. Finally discovered https://claimyr.com which got me connected to an actual IRS agent in about 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed my LLC was still active in their system despite being closed with the state. They walked me through exactly what forms I needed to file to properly close everything out. Saved me from having to file unnecessary returns for a business that wasn't operating anymore.

I have to admit I was totally wrong about Claimyr. After my skeptical comment, I decided to try it anyway out of desperation. Got connected to an IRS agent in about 20 minutes who confirmed my LLC was still open in their system despite being closed with my state for over a year! The agent explained I needed to file a final tax return (Form 1065 in my case) with the "final return" box checked in Part I of Schedule B. They also told me I needed to write "FINAL RETURN" at the top of the form to make sure it gets processed correctly. Would have had no idea about these requirements otherwise, and would've been dealing with IRS notices for years. Definitely worth it just for the peace of mind.

Another thing to think about - if your LLC had a business bank account, credit cards, or any other financial accounts, you need to close those too. I thought my LLC was fully closed but then got a statement from my business checking account a year later with maintenance fees that had accumulated to over $300! Make sure you close EVERYTHING associated with the LLC.

Don't forget about state tax obligations too! Even if you're square with the IRS, your state might still expect annual reports or tax filings until you properly notify them. I closed my LLC with the Secretary of State but forgot to notify the Department of Revenue, and ended up with penalties for unfiled state tax returns. Check if Nevada has a separate process for tax clearance.

This is such a common situation! I went through the exact same confusion with my Texas LLC a couple years ago. Here's what I learned the hard way: Even though you filed dissolution paperwork with Nevada, the IRS operates completely independently. That letter you received is definitely a red flag that they still consider your LLC active. The good news is that since you haven't had any business activity since December 2023, you shouldn't owe any taxes - but you do need to file that final return to officially close things out. First step is definitely calling the IRS Business line to confirm if you have an EIN and get your current status. Then you'll need to file whatever final return applies to your LLC structure (probably Schedule C if you were the only member) and make sure to check that "final return" box. One thing that really caught me off guard was that I also had to notify my state's comptroller office separately from the Secretary of State filing. Since you're in Nevada, you might want to double-check if there are any additional state notifications required beyond just the Articles of Dissolution. Better to be thorough now than deal with surprise bills later!

I've been through this exact situation with my own LLC closure! The key thing to understand is that state dissolution and federal tax closure are completely separate processes. That IRS letter you received is basically their way of saying "we still think you're in business" even though you filed with Nevada. Here's what I recommend doing immediately: 1. Call the IRS Business & Specialty Tax Line at 800-829-4933 to confirm your EIN status and get clarity on what they need from you 2. If you do have an EIN, file a final tax return (likely Schedule C if you're single-member) with the "final return" box checked 3. Send a written notification to the IRS stating you're closing the business - include your business name, EIN, and dissolution date Even with $0 income, filing that final return is crucial because it officially tells the IRS to stop expecting future filings. I made the mistake of thinking my state paperwork was enough and ended up getting penalty notices for two years until I sorted it out. Also, don't forget to close any business bank accounts, credit cards, or licenses associated with the LLC. Those can rack up fees even after you think everything is closed. The peace of mind from doing it right the first time is definitely worth the small effort!

I went through this exact same confusion with my single-member LLC in California last year! The IRS letter you received is definitely their way of saying they still consider your business active, even though you filed dissolution paperwork with Nevada. Here's what worked for me: I called the IRS Business line (800-829-4933) and discovered I did have an EIN that was still active in their system. Even though I had zero income for the final year, I still needed to file a final Schedule C with my personal tax return and check the "final return" box. The IRS agent explained that without this final filing, they'll keep expecting annual returns indefinitely. One thing that really surprised me was that I also needed to send a separate written notice to the IRS at my normal filing address, stating that I was permanently closing the business. Include your business name, EIN, and the date you ceased operations. This creates a paper trail that you've officially notified them of the closure. Since you haven't done any business since December 2023, you shouldn't owe any taxes, but getting this sorted now will save you from years of confusing IRS notices. Trust me, it's much easier to handle this proactively than to deal with penalty letters down the road!

I completely understand your confusion - this is one of the most common issues small business owners face when closing an LLC! The fact that you received an IRS letter means they definitely still consider your business active, regardless of filing dissolution papers with Nevada. Here's what you need to do right away: 1. **Call the IRS Business & Specialty Tax Line at 800-829-4933** to confirm whether you have an EIN and your current status in their system. This is crucial first step. 2. **File a final tax return** - Even with $0 income, you'll likely need to file a final Schedule C (if single-member LLC) with your personal return, making sure to check the "final return" box. This officially tells the IRS to stop expecting future filings. 3. **Send written notification** - Mail a letter to your normal IRS filing address including your business name, EIN, and a statement that you permanently ceased operations in December 2023. The key thing to understand is that state dissolution and federal tax closure are completely separate processes. Your Nevada filing only closed the business with the state - the IRS has no idea about this unless you specifically notify them. Don't worry about having "missed" something - this is fixable! Just tackle these steps now and you'll avoid years of confusing penalty notices. The peace of mind is definitely worth the small effort to get it done properly.

I went through almost the exact same situation with my Nevada LLC last year! The confusion is totally understandable because everyone assumes filing dissolution paperwork with the state closes everything, but the IRS operates completely independently. That letter you received is definitely the IRS saying "we still think you're in business" even though you filed with Nevada 8 months ago. Here's what saved me a ton of headaches: **First priority:** Call the IRS Business & Specialty Tax Line at 800-829-4933 to confirm your EIN status. They'll tell you immediately whether you have an EIN and what your current status is in their system. **If you do have an EIN:** You'll need to file a final tax return even with $0 income. Since you mentioned it was a side project, you're probably a single-member LLC, which means filing a final Schedule C with your personal tax return and checking that "final return" box. **Don't forget the written notice:** Send a letter to the IRS (same address where you'd file your personal returns) stating you permanently ceased business operations in December 2023. Include your business name, EIN, and dissolution date. I made the mistake of thinking my state paperwork was enough and kept getting IRS notices for two years until I properly closed things federally. Getting this handled now will save you from years of confusing penalty letters. The process is actually pretty straightforward once you know the steps!

I'm dealing with a very similar situation right now with my single-member LLC that I thought I had properly closed! Reading through all these responses has been incredibly helpful - I had no idea that state dissolution and federal tax closure were completely separate processes. Like you, I filed dissolution paperwork with my state but never did anything specific with the IRS. I haven't received any letters yet, but now I'm worried I should be proactive about this before I end up in the same boat. Based on all the advice here, I'm planning to call that IRS Business line (800-829-4933) this week to check if my LLC is still active in their system. Even though my business never made any money either, it sounds like I'll probably need to file a final return just to officially close things out. Thanks for posting this question - you've probably saved a bunch of us from making the same mistake of assuming state paperwork was enough! Definitely going to tackle this before tax season gets crazy.

This thread has been incredibly eye-opening! I'm a tax preparer and see this confusion ALL the time - clients think filing state dissolution paperwork automatically closes everything, but the IRS has no idea unless you specifically tell them. Just to add one more important point that I didn't see mentioned: if your LLC ever made an S-Corp election (Form 2553), you'll need to file Form 1120S as your final return instead of Schedule C, even as a single-member LLC. This catches a lot of people off guard because they assume single-member always means Schedule C. Also, for anyone reading this who operates in multiple states, remember that you might need to file final returns in each state where you were registered to do business, not just your home state. Each state has its own requirements for business closure notifications. The IRS Business line mentioned throughout this thread (800-829-4933) is definitely your best bet for getting clear guidance on your specific situation. They can tell you exactly which forms you need based on your LLC's tax elections and filing history. Don't try to guess - it's worth the time on hold to get definitive answers directly from the source!

I've been helping small business owners with LLC closures for years, and your situation is extremely common - probably 80% of people think filing state dissolution papers closes everything with the IRS too. It doesn't! That IRS letter is definitely their way of saying "we still think you're active" even though Nevada shows you as dissolved. Here's your action plan: 1. **Call 800-829-4933 (IRS Business line) ASAP** - They'll confirm if you have an EIN and your current federal status. This is the most important step. 2. **File a final tax return** - Even with $0 income, you'll need to file whatever applies to your LLC structure (likely Schedule C if single-member) and check the "final return" box. This officially tells the IRS to stop expecting future filings. 3. **Send written closure notice** - Mail a letter to your normal IRS filing address stating you ceased operations in December 2023. Include business name, EIN, and dissolution date. The key thing to understand: State and federal are completely separate systems. Your Nevada filing only handled the state side - the IRS has no clue unless you specifically notify them. Get this handled now and you'll avoid years of penalty notices. I've seen people get IRS letters for 3+ years after state dissolution because they never closed federally!