Found an issue on this page? Let us know and we will look into it as soon as possible.
I terminated my LLC a year after it was in operation. Do I need to file a tax return for the year of termination (no income)?
Anonymous8 views3 answers
My LLC partnership ended its operation in April 2014. After that, no income, no business. Nothing. I forgot to officially file for termination until Feb 2015.
Do I need to file the 2015 tax return when there was no operation in that year? If there is no need, I will file my 2014 return as the final return.
I fear that if IRS audits me, they can ask for the certificate of dissolution. The certificate of dissolution states the termination date to be Feb 2015. Then they will find I did not file for 2015. They may assess me for 200/month per partner.
You can file final as of 12/31/2014 and if you get audited you can show no business activity was conducted after 12/31/14 (blank bank statements work). For California you would file a final 2014 return and pay your $800 LLC tax for the 2014 tax year. After that you can escape a future $800 payment so long as:
-Your return was marked final
-You did not do business after 12/31/14
-You legally dissolve the entity within 12 months of filing the final tax return
(see form instructions attached under the heading "Canceling a Limited Liability Company"
In addition to Mr. Ganaan's helpful comment, you should quickly go to the secretary of state's website and download the dissolution forms and carefully complete those forms. Seek counsel if necessary.
