Whether a registered LLC which is Inactive has to file Tax? There is no business operation happening. Just LLC is set up. In this scenario, do i need to file the tax? State : NJ


If the LLC is a single-member LLC taxed as a sole proprietorship (pass through income) then I expect that you do not need to do anything. If this LLC makes money, it is just one more form to your personal income taxes so it is no big deal. To be safe, you could add that form with $0 income.

If the LLC is taxed as a partnership or S-Corp, then I expect that you would need to file a return, but I am not sure.


As with most laws, typically the "need" is based on the consequences of non-compliance.

In this case, inactive and "file tax" can mean several things. Many states have an annual tax for keeping the LLC active, but if it is already in inactive status then it means you already didn't pay.

The consequence is merely a higher cost to bring it active again.

If thats not the kind of 'inactive' you meant, then you have to pay that annual tax to keep it from becoming inactive.

Or ... don't.

Disclaimer: Not a lawyer and there are many states.

  • 1
    To keep an LLC active, you pay an annual fee, which isn't a tax. It is actually a business expense that you deduct from your income at tax time! – gaefan Feb 26 '18 at 13:49
  • 1
    @JeffO'Neill yes, I'm aware. Many states call it an annual fee or franchise tax. Many non-federal business taxes are deductible, or were deductible. That semantical distinction isn't important. – CQM Feb 26 '18 at 15:49

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