LegalZoom explains why owners should still file a federal tax return even if their LLC did not do any business in the ...

Do I Need to File a Tax Return for an LLC With No Income? LLC tax filing requirements depend on how the LLC is taxed. An LLC may be disregarded as an entity for tax purposes, or it may be taxed as ...

Certain activities, such as banking and insurance, are usually disallowed. LLCs may elect to be taxed as a corporation, partnership, or as part of their members’ tax return (a “disregarded entity”).

The IRS considers the LLC a disregarded entity, so it is not a taxpayer in its own right. Instead, all business profits and losses flow through to the LLC member’s individual tax return.

Common examples include single-member limited liability companies (SMLLCs)—the income and expenses of a disregarded entity flow directly to the owner’s tax return. Electing corporate status is ...