LLC Taxes

[Delta Girl]

I set up an LLC in November with my children, hoping the RV would occur soon. Now I'm getting letters from the IRS and Franchise Tax Board to pay taxes on something that I haven't used. Do have have to file any tax papers for the LLC? I have no money yet!

[Tuck]

Each state has its own set of regulations with respect to any legal structure. These rules, in Texas anyway, are easily accessed on the various websites. At the very least, you will need to submit an information report.

[Slaydadea]

Folks, this thing has been looked at from every possible angle in every direction and situation. Bottom line is, taxes are going to be due. Freedom has hidden costs. Do whats' right or live in IRS HELL for the rest of your lives. Sorry, no escaping at this point. You can prolong the agony, not escape it. Just the way it is.

Edited March 18, 2011 by Slaydadea

[Munsch]

This may not be for all the LLCs out there but from what I saw with the one I have been operating for about 3 years now in my state is that when you create a LLC you also need to get an EIN from the IRS (it is like the LLC's social secruity number in a way). I would still have to file with my state even if I did not make money. Key word there is file, not pay. They don't know you don't make anything if you don't tell them so on a LLC. Not sure exactly on the IRS part but maybe a schedule C still is needed too? Whatever the case may be get with your CPA on the IRS portion and contact your State Comptroller on the other.

Even if you don't make money the whole year and walk the roads as a hobo jumping trains ... the IRS still wants you to file with a number $0 for wages.

[Delta Girl]

Thanks everyone. I'll make sure I file a report.

[geoffrey]

if you are an llc you are required to file a 1065 and sign it. even if there is no income or activity. other wise you pay a 100 dollar penalty for each owner for each month until you do file. so get a 1065 and sign it and mail it in with the k-1's for each partner also showing 0 dollar amount. it only cost a stamp and evenlope to do all this and 15 min of you time.