First LLC: No Income, No Expense Filing
Curious to know if an LLC would be subject to taxation if it were to incur zero income and expense? And how to file them.
Answer:
Hi Marcus,
Choosing the appropriate legal entity depends on many factors including the type of business, types of services, future operational expectations, etc. Most people that are starting a business will either choose to be a Sole Proprietor or and LLC; however, in some circumstances, starting as an S-Corp or C-Corp make the most sense. If your business has some risk that you would like to separate from your personal finances, you may want to start out as an LLC.
To answer the question based on your current situation, since your business has zero income and expenses, there will be no tax impact since there will be nothing being passed on to you to be taxed.
Christopher Kent
