starting an llc with no income in 2020; would i still have to file taxes?

 

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starting an llc with no income in 2020; would i still have to file taxes?

it is time to form my llc. but in 2020 my llc will have no income. only expenses; would my llc still have to file taxes? i dont want to file taxes because its near the end of the year, so id be filing taxes an headaches for like 2 monhts of llc’s existence

or should i wait until 2021 to start the llc and make it feel like a full year to do taxes at the end of 2021?

starting an llc with no income in 2020; would i still have to file taxes?

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6 Replies to “starting an llc with no income in 2020; would i still have to file taxes?”

  1. we were in a similar situation, started llc in 2019. $0 income the whole year and was told by my account that we still needed to file our taxes. So i’d say wait if you want to avoid the hassle.

  2. (Not a certified CPA) There are forms you will still have to file with IRS.

    Are you going to be filing on your own? Or would you work with a CPA?

  3. If you don’t file, they will likely assume a tax burden and will send a collections letter for an assumed amount. You can only make said collection letter go away by filing.

    Not filing doesn’t mean they assume you didn’t make any income. They assume all entities have made an income and will be paying taxes unless you file to show otherwise.

  4. Might depend on the state you register the llc in for that decision. IRS is the same either way but Ca is $800/year regardless of income. My state is $25. Wasn’t a big deal for me starting in Nov. but if I was still in Ca, I’d wait till Jan.

  5. An LLC is a disregarded entity for Federal tax purposes so starting it isn’t really relevant.

    Have you started trying to sell your product/service? Have you elected to be taxed as a corporation? What state are you in – you might have to file something with them annually for the LLC?

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