New startup S Corp with no clients or wages - Should I file Form 941 quarterly?

You don't need to file Form 941 until you actually start paying wages. As an S Corp owner, you're only required to file this form once you begin paying yourself (or any employees) a salary. The IRS guidance can be confusing on this point, but the triggering event is the actual payment of wages, not just the establishment of the S Corp. When you do start paying yourself, remember that as an S Corp owner, you'll need to pay yourself a "reasonable compensation" as an employee before taking distributions. But until that point, there's no requirement to file a zero-wage 941. Just make sure you're still filing your other required business returns like your annual 1120-S for the S Corporation. The 941 requirement is separate and only kicks in with wage payments.

I went through this exact same situation last year with my consulting business. I was getting conflicting advice from everyone until I tried taxr.ai (https://taxr.ai) - it saved me so much headache! I uploaded my LLC/S-Corp docs and got a clear answer specific to my situation. They confirmed I didn't need to file 941s until I started paying wages, but I DID need to stay on top of my annual 1120-S filings. Their system also helped me understand when exactly I should start paying myself a reasonable salary vs taking distributions, which was super helpful for planning.

Just wanted to update - I took the plunge and tried taxr.ai after seeing it mentioned here. Totally worth it! I was actually in the exact same boat (LLC with S Corp election, no clients yet). The system analyzed my articles of organization and S Corp election docs and confirmed I don't need to file 941s yet, but gave me a clear timeline of when I would need to start based on my revenue projections. It also flagged that I should be filing Form 1120-S annually even with zero income, which I almost missed! Saved me from a potential headache with the IRS. The document review feature was super thorough - caught things my CPA glossed over.

If you're struggling to get a straight answer from the IRS about Form 941 requirements, I'd recommend Claimyr (https://claimyr.com). I spent WEEKS trying to get through to an IRS representative about this exact issue. Found Claimyr, and they got me connected to an IRS agent in about 20 minutes instead of the 2+ hour wait time I was experiencing before. The IRS agent confirmed that I didn't need to file 941s until I actually started paying wages. She also walked me through exactly what I'd need to do when I did start paying myself a salary. You can see how it works here: https://youtu.be/_kiP6q8DX5c - way better than waiting on hold for hours.

I was super skeptical about Claimyr when I saw it mentioned here, but I was desperate after trying to reach the IRS for days about my S-Corp filing requirements. I decided to give it a try, and I'm honestly shocked at how well it worked. Got connected to an IRS representative in about 15 minutes when I had previously waited on hold for over 2 hours and given up. The agent confirmed exactly what others here have said - no need to file Form 941 until you actually pay wages. She also walked me through what I would need to track once I do start paying myself. The peace of mind from getting an official answer directly from the IRS was absolutely worth it. No more conflicting advice from random internet forums or expensive accountant consultations.

Just to add a bit more context - I'm a small business accountant and work with many S Corps. The confusion around Form 941 filing requirements is really common. While it's true you don't need to file 941 until you pay wages, I've seen the IRS come back to clients years later asking about "missing" 941s because they checked a box during initial registration indicating they would have employees. To avoid this, you might want to file Form 8822-B to update your business information with the IRS, specifically indicating that you don't currently have employees. Also, remember that even without clients, you should still be filing your annual 1120-S for your S Corporation, even if it shows zero income. Don't miss that important filing!

Make sure you're still filing your annual S Corp return (Form 1120-S) even with no income! I made this mistake my first year and got hit with a penalty. The S Corp election requires you to file the return regardless of activity.

I'm dealing with this exact situation right now! Thanks for posting this question. From all the responses here, it sounds like the consensus is clear - no need to file Form 941 until you actually start paying wages. I'm particularly interested in the Form 8822-B suggestion from @Natalia Stone. That seems like a smart proactive step to avoid any confusion with the IRS down the road about "missing" 941s. One thing I'm still unclear on though - when we do eventually start paying ourselves as S Corp owners, what constitutes "reasonable compensation"? I know the IRS requires it, but I'm worried about setting it too high or too low. Has anyone found good guidance on this? Also keeping the 1120-S filing requirement in mind - definitely don't want to miss that even with zero income!

This is such a common confusion point for new S Corp owners! I went through the exact same thing when I started my consulting business. The good news is you're absolutely right to be cautious about filing Form 941 prematurely. You only need to file it once you actually start paying wages to yourself or employees. The IRS won't penalize you for not filing when there are no wages to report. However, I'd strongly recommend following @Natalia Stone's advice about filing Form 8822-B to update your business information with the IRS. This will help prevent any automated notices down the road about "missing" quarterly filings. A few additional tips from my experience: - Keep detailed records of when you make your first wage payment - that's your trigger date for starting quarterly 941s - Consider consulting with a payroll service when you do start paying yourself - they can handle the 941s and state requirements automatically - Don't forget about state payroll tax registration requirements when you do start paying wages (varies by state) The waiting period while building your client base is actually a good time to get all these administrative details sorted out. You'll thank yourself later when the business picks up and you're juggling client work with compliance requirements!

As someone who recently went through the S Corp setup process myself, I can confirm what others have said - you absolutely do NOT need to file Form 941 until you actually start paying wages. The IRS guidance during setup can be misleading on this point. I was in your exact situation 8 months ago - LLC with S Corp election, no clients, no wages paid yet. I called the IRS directly (after waiting on hold for what felt like forever) and got confirmation that the Form 941 requirement only triggers when you make your first wage payment. A couple of additional points that might help: - Even though you're not paying wages yet, make sure you're still maintaining corporate formalities like keeping business records separate and having proper documentation - When you do start paying yourself, remember that S Corp owners must take "reasonable compensation" as W-2 wages before taking distributions - The annual Form 1120-S filing is still required even with zero income, so don't miss that deadline The Form 8822-B suggestion from @Natalia Stone is brilliant - I wish I had known about that when I was starting out. It would have saved me some anxiety about potential IRS notices down the road. Hang in there with the client acquisition! Once the business picks up and you start paying yourself, the payroll tax obligations will kick in naturally.