LLC With No Income: Do You Still Need to File Taxes?

A common question from new LLC owners abroad: "My LLC made no money this year. Do I still have to file anything in the US?" The honest answer is that it depends on who owns the LLC and what it did, and that "no income" does not by itself mean "no filing".

Two separate questions

People mix these up, so keep them apart:

1. Does the LLC owe US income tax? Often not, if it made no US income.
2. Does the LLC have to file an IRS form? Often yes, even with nothing owed.

Owing tax and filing a form are different duties. The second one is where owners get caught.

If the owner lives outside the US

A single-member LLC owned by a non-US person is the case with the most traps. It has no tax return of its own, but if the owner put money in or took money out, the LLC must file Form 5472 with a pro forma Form 1120. We explain it step by step in our Form 5472 guide. Missing it carries a $25,000 penalty even with zero income.

If the owner is a US resident or citizen

A single-member LLC owned by a US person is reported on the owner's personal return. The business income and expenses go on Schedule C of Form 1040. If the LLC really had no activity, there may be nothing to report on Schedule C, but your personal return is still your own responsibility.

If there are two or more owners

A multi-member LLC is taxed as a partnership by default and files Form 1065 every year, even if it made no money. The IRS charges a late-filing penalty per partner per month, so a two-owner LLC that forgets pays double.

If the LLC chose to be taxed as a corporation

An LLC that elected to be a C-Corp files Form 1120, and one that elected S-Corp status files Form 1120-S. Both are due even in a loss year.

What counts as "no activity"

• No money came in from customers.
• No expenses were paid from the company account.
• The owner did not deposit or withdraw money.

If one of those is untrue, the year had activity. Paying the state annual fee from the company account, for example, is an expense.

The state side

Separate from the IRS, many states want an annual report or a franchise tax even with no income. Wyoming, Delaware, Florida and others each have their own rule and amount. See our annual report filing service, and LLC fees by state for the amounts.

A simple yearly checklist

• Is the owner a US person or not?
• One owner or more than one?
• Any money moved between owner and company?
• State annual report or franchise tax due?
• Registered agent still active? See registered agent service.

How we help

Choose your company type on our US LLC tax filing page and the right forms are selected for you. If your LLC had no bank activity, you can say so instead of uploading a statement. This is general information, not tax advice.