How to File Taxes for an LLC With No Income? (Simple Guide)

Published by Atty. Danya Shakfeh | Author

Last updated: July 10, 2025

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As an LLC owner, you must meet tax obligations—even if your business had no income.

With 33.2 million small businesses in the U.S. making up 99.9% of all businesses, understanding tax rules is essential. Even LLCs with no income must still file certain tax forms.

Based on expert insights and my own research as a business consultant, I’ve created a guide to help you file taxes for an LLC with zero earnings.

Quick Summary

Steps to Filing Taxes for an LLC With No Income

To file taxes for an LLC with no income, follow these steps:

1. Determine Your Filing Status: Identify whether your LLC is single-member or multi-member, as this affects tax filing requirements.

2. Obtain an EIN: Apply for an Employer Identification Number via the IRS website—this is required for tax reporting.

3. Complete Tax Forms:
- Single-member LLCs typically file Schedule C with Form 1040.
- Multi-member LLCs usually file Form 1065.

4. Report Zero Income: Accurately enter zero income and verify all business details, including EIN and legal name.

5. File On Time: Submit the forms by the IRS deadline, typically March 15, unless you file for an extension.

Do I Need to File Business Taxes if There Is No Income?

You must file LLC taxes even if your business earned no income.

In my experience, the IRS still requires LLCs to report financial activity, income or not. Filing helps maintain a clear financial record, which is essential for audits or loan applications.

We recommend consulting a tax professional or using specialized tax software for an LLC to ensure proper filing and IRS compliance.

LLC Taxation and Federal/State Income Taxes

By default, an LLC is treated as a "pass-through" entity for tax purposes. This means the LLC doesn't pay federal income tax itself—its profits and losses pass through to the owners, who report them on personal tax returns.

The members or managers of your LLC must still file a federal return, even if the business records losses. These losses can often offset future income, but they must be reported.

Note that state-level taxes vary. Some states charge a minimum tax or annual fee, regardless of LLC income.

"Consult a tax pro to navigate filing requirements based on your LLC structure (single-member or multi-member) and potential benefits like offsetting future income with expenses."

- Jon Morgan, CEO, Co-Founder & Editor-in-Chief of Venture Smarter

LLC Tax Filing Requirements

Drawing from my experience running multiple LLCs, I’ve learned that tax filing requirements differ depending on whether your LLC is classified as a corporation or partnership.

Here’s what to know about filing taxes for an LLC with no income:

1. LLCs Treated as Sole Proprietorships:

If your LLC is a single-member LLC, it’s considered a disregarded entity by default. This means you report income and expenses on your personal tax return using Schedule C with Form 1040 [1].

In our first year with no income, we still filed Schedule C and reported \$0 income with any eligible deductions.

2. LLCs Treated as Partnerships:

For a multi-member LLC, the IRS defaults to treating it as a partnership. Even with no income, you must file Form 1065 (U.S. Return of Partnership Income).

This form reports the LLC’s operations, and each member receives a Schedule K-1 to report their share of losses or income on their personal return [2].

3. LLCs Treated as S or C Corporations:

LLCs that elect S or C corporation status must file the appropriate corporate tax return, even if no income was earned during the tax year.

FAQs

References:

1. https://www.irs.gov/forms-pubs/about-schedule-c-form-1040
2. https://www.investopedia.com/terms/s/schedule-k-1.asp