Short answer: Whether an LLC with no income files a federal tax return depends on how the IRS taxes it. A single-member LLC owned by a US person with no income and no expenses has nothing to report. A multi-member LLC with no income and no expenses does not need to file Form 1065. An LLC taxed as an S corporation or C corporation files its return every year, even with zero income. A foreign-owned single-member LLC files Form 5472 with a pro forma Form 1120 for any year it has transactions with its owner. State annual reports and fees are due no matter what the LLC earned.
LLC Tax Filing With No Income: By LLC Type
| LLC type | Federal form | File with no income? | Due date (calendar year) |
|---|---|---|---|
| Single-member LLC, US owner (default) | Schedule C with Form 1040 | Only if the LLC had expenses you want to deduct | April 15 |
| Multi-member LLC (default partnership) | Form 1065 plus a Schedule K-1 for each member | Yes if it had any income or expenses. No if it had neither | March 15 |
| LLC taxed as an S corporation | Form 1120-S plus a Schedule K-1 for each owner | Yes, every year | March 15 |
| LLC taxed as a C corporation | Form 1120 | Yes, every year | April 15 |
| Single-member LLC, foreign owner | Form 5472 with a pro forma Form 1120 | Yes, for any year with reportable transactions with the owner | April 15 |
Not sure how your LLC is taxed? Read what tax classification is an LLC.
Single-Member LLC With No Income
By default, the IRS treats a single-member LLC as a disregarded entity. The LLC does not file its own federal return. You report its income and expenses on Schedule C with your personal Form 1040.
- No income and no expenses: there is nothing to report on Schedule C. You still file your own Form 1040 if your personal income requires it.
- No income but some expenses: file Schedule C to report the loss. Startup and operating costs, such as formation fees, software and a registered agent, can reduce your other taxable income, subject to the IRS rules on startup costs and hobby losses.
Multi-Member LLC With No Income
A multi-member LLC is taxed as a partnership by default and files Form 1065. The IRS does not require a partnership return for a year in which the partnership had no income and no expenses or credits to claim.
If the LLC paid any expense, such as a state filing fee, a registered agent or a website, it has deductions and must file Form 1065 and issue a Schedule K-1 to each member. A late Form 1065 carries a penalty for each member for each month it is late, so file on time even when the numbers are small.
LLC Taxed as an S Corp or C Corp With No Income
Once your LLC elects corporate taxation, it files a return every year, whether it earned anything or not.
- S corporation: file Form 1120-S by March 15 every year the election is in effect. A late return carries a penalty for each shareholder for each month it is late.
- C corporation: file Form 1120 by April 15 every year.
If the business is dormant and will stay that way, talk to your accountant about revoking the S corp election or dissolving the LLC so the filing obligation ends.
Foreign-Owned Single-Member LLC With No Income
A single-member LLC owned by a non-US person is still a disregarded entity, but the IRS treats it as a corporation for one purpose: reporting transactions with its foreign owner. For any year the LLC has a reportable transaction, it files Form 5472 attached to a pro forma Form 1120.
- Reportable transactions include the money you paid to form the LLC, capital you contributed, loans and payments the LLC made for you or you made for it.
- That means most new foreign-owned LLCs file in their first year, even with zero sales, because the owner paid the formation costs.
- The penalty for not filing is $25,000 per form, per year.
- The deadline is April 15. File Form 7004 by that date for a six-month extension.
Read our full guide to Form 5472 filing requirements for foreign-owned LLCs. BusinessAnywhere’s US LLC tax filing service handles this for non-resident owners.
State Filings You Owe Even With No Income
States charge to keep your LLC in good standing, not on what it earned. Common examples:
| State | What you owe each year |
|---|---|
| California | $800 minimum franchise tax and Form 568, plus a $20 Statement of Information every two years |
| Delaware | $400 annual LLC tax, due June 1 |
| Wyoming | Annual report with a $60 minimum license tax |
| New Mexico | No annual report |
Missing a state filing leads to late fees and can end with the state dissolving your LLC. See annual report filing requirements by state.
How to File Taxes for an LLC With No Income: Step by Step
- Confirm your tax classification. Check your EIN confirmation letter (CP 575) or any Form 2553 or Form 8832 you filed.
- Gather your records. Bank statements, receipts for every expense and any money you put into or took out of the LLC.
- Decide whether a federal return is required using the table above.
- File the right form by its deadline, or file Form 7004 (Form 4868 for a Schedule C on your personal return) for an extension.
- File your state annual report and pay any state tax, even if the LLC earned nothing.
- Keep the records for at least three years.
What Documents Do You Need?
- Your EIN and the IRS letter that confirms it.
- Your operating agreement and each member’s ownership percentage.
- Business bank statements for the full year.
- Receipts and invoices for expenses, including formation and registered agent fees.
- Records of contributions, loans and distributions between the LLC and its owners.
- Last year’s federal and state returns, if any.
FAQs
Does an LLC have to file taxes if it had no income?
It depends on how the LLC is taxed. A US-owned single-member LLC with no income or expenses reports nothing, and a multi-member LLC with no income or expenses does not file Form 1065. An LLC taxed as an S corp or C corp files every year, and a foreign-owned single-member LLC files Form 5472 for any year with owner transactions.
Can I deduct business expenses with no income?
Yes. A single-member LLC reports the expenses on Schedule C, and the loss can offset your other income, subject to IRS rules on startup costs and hobby losses. A multi-member LLC passes the loss to its members on Schedule K-1.
What happens if I don’t file taxes for my LLC with no income?
If no return was required, nothing. If one was required, the IRS charges late filing penalties: per member or shareholder per month for Forms 1065 and 1120-S, and $25,000 for a missing Form 5472. Your state can also charge late fees and dissolve the LLC for missed annual reports.
Do I file my LLC and personal taxes together?
For a single-member LLC taxed by default, yes. The LLC’s income and expenses go on Schedule C with your Form 1040. Multi-member LLCs and LLCs taxed as corporations file their own returns.
When is an LLC tax return due?
For calendar-year LLCs, Form 1065 and Form 1120-S are due March 15. Schedule C with Form 1040, Form 1120 and Form 5472 with a pro forma 1120 are due April 15. Form 7004 extends business returns by six months.
Does a foreign-owned LLC with no income file Form 5472?
Yes, for any year with a reportable transaction between the LLC and its owner, such as paying formation costs or contributing capital. Most new foreign-owned LLCs file in their first year even with no sales.
