New client feels he does not need to file a tax return for a 2 member (not husband and wife) LLC (actually 2 different LLC's with same 2 members in each) due to one LLC owning raw land and the other LLC owning nothing. Neither had any activity in 2008 or 2009. Does each LLC still need to continue filing tax returns for those years?
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Yep. Or else they will eventually get a letter asking for the returns. -
Just thinking out loud....
What are they doing with the land?
I'm not sure with no income if they would be required to file but if not they might still want to file to carry forward any carrying costs? Or does that have to be elected on a timely filed return?
If they are required to file the late filing fees for Form 1065 are quite high.Comment
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I would file a zero dollar tax return if there was no activity.
Also think about the state. CA f.e. has a $800 minimum fee per year for the luxury to be in business there, maybe this is the filing fee with SOS. I am sure someone from CA will know.Comment
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Yep Calif
If tp is operating in Calif, yep $ 800 fee and a filing fpr LLC and Corps - so far not for Partnerships, but Ca will assess a "Late File" for their form 565.
I think it is important to file regardless of activity on any entity, if the t/p still possesses an EIN# and registered
I have filed many Arizona and California LLC returns with -0-
Keeps everyone Happy!
If tT/P doesn't t like the filing fees and preparer/accountant fees, then they should have thought twice about opening the entity or need to take a look at "closing" the entity.
SandyLast edited by S T; 05-26-2010, 02:36 AM.Comment
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LLC registered in AZ but LLC owns land in NM
Is that going to require both an AZ and NM tax return?Comment
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