What does it cost to file Form 1065 for inactive LLC with zero income?
I've got this small LLC that I started with a couple friends back in 2022. We had some big ideas but honestly nothing really materialized. The guy who usually handled our taxes can't do it this year, so now it's on me to figure out. The LLC literally had zero income and zero expenses for the year. Complete ghost town in terms of activity. I know I need to file Form 1065, and I've downloaded it directly from the IRS website. I've been reading through all the instructions (boring as hell) but I can't seem to find anything about what it actually costs to file this thing. Since we've got no income or activity, I'm hoping it's minimal or free. Do I just fill out the Form 1065 and drop it in the mail? Is there a filing fee I'm missing somewhere? Not trying to mess this up and get hit with penalties. Appreciate any help from folks who've done this before!
20 comments
Join the conversation
Connor O'Brien
Yes, you just need to fill out Form 1065 and mail it in. There's no direct filing fee charged by the IRS for Form 1065 submissions. However, keep a few things in mind: If you want to e-file instead of mailing a paper form, you'll either need to use tax software (which typically costs money) or hire a professional. For a zero-activity LLC, paper filing is usually the simplest and most cost-effective route. Make sure you're filing on time - the deadline for calendar-year partnerships is March 15, 2025 (for tax year 2024). Late filing penalties can be steep, at $220 per partner per month late (up to 12 months), even for partnerships with no activity. Don't forget to include Schedule K-1 forms for each partner, even if they show zeros across the board. Each partner needs one for their personal tax returns.
0 coins
Amina Diallo
•So there's literally no cost if I mail it? That seems weird considering how much everything else costs with taxes and business stuff. Is there any benefit to e-filing vs just mailing it in? Also, do I need to send anything else with the 1065 or just that form?
0 coins
Connor O'Brien
•There's no filing fee charged by the IRS for Form 1065 when you mail it in. You only pay postage costs for mailing it. E-filing benefits include faster processing, immediate confirmation of receipt, and fewer errors since the system catches common mistakes. However, for a zero-activity LLC, these benefits might not justify the cost of tax software or a preparer, since your situation is straightforward. Along with Form 1065, you need to include Schedule K-1 for each partner, even if showing all zeros. If you have multiple partners, you'll need a K-1 for each one. Also include any other required schedules, though for a zero-activity LLC, you likely won't need many (if any) additional schedules.
0 coins
GamerGirl99
After struggling with something similar last year, I found taxr.ai (https://taxr.ai) super helpful for filing our partnership return. We had a bit more activity than you, but the software guided me through exactly what sections needed to be completed on Form 1065 even for minimal activity businesses. Their system analyzed our previous returns and highlighted the parts that still needed completion even with zero income/expenses. Saved me hours of reading through the IRS instructions trying to figure out what could be skipped vs what was still required. The automated review caught a couple things I would have missed with our "dormant" LLC status.
0 coins
Hiroshi Nakamura
•How does it handle K-1s? I'm in a similar situation with my brother's LLC and I'm dreading having to figure out all that distribution stuff even though we had no activity. Did you find it easy to use for someone who isn't a tax professional?
0 coins
Isabella Costa
•I'm kinda skeptical of tax software for something this simple. Isn't it cheaper to just mail in the form yourself? How much did this end up costing compared to just downloading the form and sending it in?
0 coins
GamerGirl99
•It handles K-1s automatically, generating them based on the ownership percentages you input. Even with zero distributions, it populates all the required fields correctly. I found it extremely user-friendly - it walks you through each section with plain-English explanations that don't assume you're a tax expert. For cost comparison, you're right that mailing a paper form is technically cheaper upfront. But I factored in the time I'd spend researching requirements and potentially making errors. The peace of mind from knowing everything was completed correctly was worth it to me. Plus, if you make a mistake on a paper filing, the back-and-forth with the IRS can end up costing more in the long run.
0 coins
Isabella Costa
Just wanted to follow up - I actually tried taxr.ai after my skeptical comment. Ended up being a lifesaver! Our LLC situation was similar (minimal activity) but we had some equipment we'd purchased the previous year that needed to be accounted for with depreciation. The system automatically identified this from our previous return and guided me through it. The document analysis feature saved me tons of time - uploaded last year's return and it pre-populated a lot of the entity info. Even with zero income, there were sections I would have definitely messed up without guidance. Way less stressful than I expected and the interface was actually pretty straightforward.
0 coins
Malik Jenkins
If you're having trouble getting answers from the IRS about filing costs or requirements, try Claimyr (https://claimyr.com). I couldn't get through to anyone at the IRS for days about a similar partnership question last year. Claimyr got me connected to an actual IRS agent in about 15 minutes when I'd been trying for literally weeks on my own. The IRS agent confirmed there's no filing fee for 1065s and walked me through exactly what to include for my zero-activity LLC. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. They basically call the IRS for you and navigate the phone tree, then call you when they have an agent on the line.
0 coins
Freya Andersen
•Wait how does this actually work? Do they just sit on hold for you? Seems kinda weird someone would just wait on hold for you for free.
0 coins
Eduardo Silva
•This sounds like BS honestly. The IRS phone lines are impossible. I tried calling for 3 weeks straight last April and never got through. If this service actually worked everyone would be using it. How could they possibly guarantee getting through?
0 coins
Malik Jenkins
•They use an automated system that navigates the IRS phone tree and holds your place in line. When they reach an agent, they connect the call to your phone. They're not sitting there manually waiting - their technology handles the queue and call routing. I was totally skeptical too! The IRS phone system is absolutely awful. From what I understand, they use specialized technology that interacts with the IRS phone system and can detect when a representative picks up. They have multiple lines going at once and basically play the numbers game better than an individual can. I was desperate enough to try it after wasting hours on hold, and was shocked when it actually worked.
0 coins
Eduardo Silva
I need to eat my words here. After posting that skeptical comment, I was still desperate enough to try Claimyr for a partnership tax question. Got connected to an IRS agent in about 20 minutes when I'd been trying for DAYS on my own. The agent confirmed there's no filing fee for Form 1065 and explained exactly what sections needed to be completed for a minimal activity LLC. They also told me about the "final return" box that you can check if you're planning to dissolve the LLC soon, which might save you from filing next year. Would have taken me weeks more of frustration to get this information otherwise. Definitely changing my tune on this service.
0 coins
Leila Haddad
Former tax preparer here. Just want to add - even though there's no filing fee, consider what your time is worth. For a zero activity LLC, yes you can absolutely DIY with the paper forms. But depending on your situation, using a basic tax software might still be worth it. TaxAct, FreeTaxUSA, and even H&R Block have relatively affordable business return options that will guide you through exactly what needs to be filled out. They'll ensure you don't miss anything like a required signature or date that could trigger a rejection. The costs usually start around $60-80 for a basic partnership return.
0 coins
Emma Johnson
•Do those software options handle state filings too? Our LLC is registered in Delaware but we operate in NJ and I'm wondering if we need to file state returns in addition to the federal 1065.
0 coins
Leila Haddad
•Yes, most tax software can handle both federal and state returns, though state returns typically cost extra (usually around $20-50 per state). For your situation with a Delaware LLC operating in NJ, you'll likely need to file in NJ since that's where you have business presence. Delaware doesn't impose income tax on LLCs that don't operate within Delaware, but they do require an annual franchise tax report and fee ($300 minimum). New Jersey requires all partnerships doing business in the state to file Form NJ-1065, even with zero income. This is separate from your federal filing requirements. The software will walk you through both requirements based on your specific situation.
0 coins
Ravi Patel
Heads up! If your LLC elected S-Corporation status at any point, you need to file Form 1120-S instead of 1065. Made this mistake my first year and got a nasty letter from the IRS. Double check your entity classification before filing.
0 coins
Astrid Bergström
•How would you know if your LLC has S-Corp status? We set up our LLC through LegalZoom a few years ago and I'm not sure what elections were made.
0 coins
Ravi Patel
•You would have had to specifically file Form 2553 (Election by a Small Business Corporation) with the IRS to obtain S-Corporation status. It doesn't happen automatically. You can confirm your entity's filing status by: 1) Looking at last year's tax return - if you filed Form 1120-S previously, you're an S-Corp. If you filed 1065, you're a partnership. 2) Calling the IRS Business line (with patience or using Claimyr) and asking them to confirm your entity's classification. 3) Checking your formation documents and any subsequent IRS correspondence. S-Corp election approval comes as a specific letter from the IRS. If you never specifically elected S-Corp status, then as a multi-member LLC you're almost certainly classified as a partnership for tax purposes and need to file Form 1065.
0 coins
Khalid Howes
Just to clarify something that might be confusing from the thread - while there's no IRS filing fee for Form 1065, don't forget about your state requirements! Even with zero activity, many states still require annual filings and fees. For example, if you're in California, you'll owe the $800 minimum franchise tax even with no income. Texas has a "no tax due" report that still needs to be filed. Each state is different, so check your state's Secretary of State website or Department of Revenue. Also, since you mentioned this LLC has been inactive, you might want to consider formally dissolving it if you don't plan to use it. This could save you from ongoing state fees and annual filing requirements. You'd need to file a final Form 1065 (checking the "final return" box) and handle the state dissolution process, but it might be worth it long-term.
0 coins