Introduction: Do You Have to File Taxes for an LLC With No Income?
Yes — even if your LLC didn’t make a dollar, you still have to file taxes. The IRS and your state expect annual filings to confirm your business’s status, even when there’s zero activity or profit.
If you skip tax filings, you risk penalties and compliance issues.
Types of LLCs and Filing Requirements
Single-Member LLC (SMLLC)
- Treated as a disregarded entity
- File Form 1040 + Schedule C
- If no income or expenses: File a zero-activity Schedule C
Tip: Even if the business didn’t operate, you should still submit the form to avoid red flags.
Multi-Member LLC
- Default status: Partnership
- Must file IRS Form 1065
- Also issue Schedule K-1 to each member
Even with no income or expenses, Form 1065 is required annually unless the IRS has approved a different classification.
LLC Electing S Corporation Status
- Must file Form 1120-S
- Need to issue K-1s to shareholders
- Must file, even if inactive, to maintain S Corp status
Why File If There’s No Income?
- Compliance: Stay in good standing with the IRS and your state
- Avoid penalties: IRS charges for missing or late filings — even for inactive businesses
- Build business credibility: Filing shows operational diligence
What to Include on a “No Income” Tax Return
- Business name and EIN
- Indicate $0 revenue and $0 expenses
- Still include member/shareholder details (especially in multi-member LLCs)
- Sign and date all required forms
State Filing Obligations
Some states require annual franchise taxes or reports even if the LLC earned nothing.
For example:
| State | Filing Requirement for No Income |
|---|---|
| Texas | Franchise tax report & public info report required |
| California | $800 minimum LLC tax due annually |
| Florida | Annual report required |
Check your state’s rules via its Secretary of State or tax department website.
How to File Taxes for LLC With No Income: Checklist
- Identify your LLC’s tax classification (Single-member, Multi-member, or S Corp)
- Fill out the appropriate IRS form (1040 Schedule C, 1065, or 1120-S)
- Enter $0 income and expenses
- File electronically or by mail before the deadline
- Check for state-specific reports or minimum taxes
Deadlines to Remember
- March 15: S Corporations and Partnerships (Form 1120-S, 1065)
- April 15: Single-Member LLCs (Schedule C with personal 1040)
Always verify the current year’s deadlines on IRS.gov.
Final Thoughts
Even when your business has no income, knowing how to file taxes for LLC with no income is essential. Filing ensures IRS compliance, avoids costly penalties, and keeps your LLC in good standing.
