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February 13, 2024
Question

Reporting $0 earnings/expenses for LLC? (with a few caveats...)

  • February 13, 2024
  • 1 reply
  • 0 views

I formed an LLC thinking I might use it for a small amount of income I received in 2023. I ultimately decided to simply bring in that income as a sole proprietor (through my own bank account, etc). It was only few thousand dollars that I reported as business income on schedule C, and it's almost all eaten up by expenses. I don't plan to remain in the field or do more work of this nature. Since I never used the LLC, I also plan to dissolve it this year (2024). 

However, I've read that all entities must file a federal tax return whether or not they have any income or expenses to report. How do I report income for my LLC? It's registered in my name, but the LLC company name is a creative title I chose for the industry I thought I'd be using it for. Does my LLC need a totally separate tax return with its own name, where I report $0 income and $0 expenses?

1 reply

February 13, 2024

sole proprietorship or single member LLC - same reporting use schedule C to report income and expenses.

 

mcfish33Author
February 13, 2024

thanks - so this applies even though they are separate entities? (one being me, an SSN taxpayer and one being my $0 earning LLC with its own EIN?)

 

Does this mean I don't need to a file a return for the LLC?

KrisD15
February 13, 2024

YES.

They are not separate tax entities if you are a single member LLC.

It is possible for an S-Corp to also be an LLC in which case it would file separately. 

An LLC does not file its own tax form if it is a sole-proprietorship. You report everything on your Schedule C.

 

A Limited Liability Company (LLC) is set-up through the state. 

A LLC also needs to be a tax entity for federal taxes and that usually is a sole-proprietorship. Establishing an LLC through the state for your sole-proprietorship gives you some legal protections but does not change the way you file taxes. You can also name the sole-proprietorship/LLC and get a EIN number, but (in your case, as a single member LLC)  it always is filed on schedule C and is part of your individual tax return (1040).

 

 

 

 

 

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