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Do we need to fill Schedule C for sleeping LLC (Sole Prop.) ?

Hi,

My wife opened a Sole Prop. LLC in 2008. We did generate some income and filed schedule C for 2008 tax return. The profit was less than $1000 and gross income was around $3500.

But in year 2009, my wife didn't generate a single penny from that LLC. She didn't close the LLC and paid the annual fees to state.

We filed a joined return last year and that is what we are planning for this year too. There is no profit or loss or any income from this LLC. My question is, do we even need to file Schedule C this year ? or We need to file with nill income and no profit/loss ? We did apply for a separate EIN for this LLC in 2008.

Thanks in advance

-David

Reply to
David
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I have an issue with using "we" in the same sentence as a "Sole Prop LLC"

There is no We in Sole Prop LLC.

I think you are saying there was no busines income or expenses.

If there was no depreciable property owned by the business, just don't file a schedule C for the year.

Don't be concerned about having an EIN for your LLC, so long as you filed a schedule C and not an 1120.

Reply to
Arthur Kamlet

so, isn't that payment of annual fees to the state a business expense you should be deducting on Schedule C, and showing a loss for the year? I presume (but of course I could be wrong) that since she didn't close the LLC, she still intends to be in that business?

Reply to
Wallace

,

I don't - but then again, I'm in a community property state, and the "we" is a husband and wife. ;-)

(I'm waiting for the moderator's wisecrack.....)

I think he's saying that there's no business income, but the annual filing fees certainly count as an expense for an OPERATING business.

I don't think you have that choice (not to file a Schedule C). The more important question is: Is the business still operating, and if not, then why did it pay its annual fee saying it was?

With that, I agree.

Reply to
D. Stussy

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