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I formed an LLC 18 months ago, in 2010. Nothing happened in 2010- it didn't issue equity; it didn't have any income; and it didn't have any expenses (other than formation expenses, which I paid myself, and which were only about $35). Now I'm filing a tax return for 2011 (as I took in another member and had a few thousand of expenses, but still no income) and realized that I didn't do anything in 2010, but perhaps should have. Oops.

For the 2011 return, which I'm working on, can I check on Form 1065 that it's an initial return? Or should I now file a return for 2010, listing zero everywhere on the form? Are there any penalties?

Drat! I want to fully comply with the law.

Thanks.

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3 Answers

up vote 1 down vote accepted

You still file with $0 income but you're not 'late' since you don't owe the IRS anything. They only care that you pay them all your income taxes by the 15th. Most people over-pay to avoid late penalties. When they file for a tax return, they are asking for that over-paid amount back. And they can take their sweet time filing a tax return to collect that money.

What theonlylos is talking about is yearly fees for registering a business, this has nothing to do with your personal/business income tax and as an LLC it's considered one and the same.

Go fill out Form 1040 and send that puppy in for your and their records!

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up vote 1 down vote

Call up your local tax office and explain. Given you didn't trade that year I suspect they will just ask you to do one now. Legally though you should have filled one in listing no income and no outgoings.

(As usual remember i'm not a lawyer, just someone from the internet)

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Although I'm not a CPA I know that in New York State, if you have an LLC with no activity at all, you are not required to pay a fee nor are you required to file the annual fee. I imagine many other states don't penalize non-acctive LLCs although sometimes states might have additional taxes that others don't.

Your best bet is to check your states Division of Corporations for guidance and if you need further help consulting a CPA is probably worth the cost.

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