If an single member LLC is formed in Ohio, but does nothing within the first year besides set up bank accounts and other infrastructure activities, what tax forms, if any, are required to be filed by the single member? ie: No money is moved between the LLC any anyone besides the initial investment.


You’ll file a tax return showing what the LLC did.

I assume by “inactive” you mean the LLC did not earn any revenue.

However, it may have incurred expenses, which means the LLC showed a loss, which can be deducted on your personal tax return and reduce your tax liability.

If you don’t file a return for an LLC which lost money, then you are leaving deductions on the table and overpaying on your personal taxes.

For example, did the LLC pay any bank fees? Order checks? Those are expenses, which can be deducted.

If you are a single member LLC, use Schedule C on your 1040 to record your LLC’s income ($0) and expenses ($X). The LLC will show a loss, which will translate into a deduction on your 1040.

State Franchise Taxes and Annual Report Fees

Your question did not exclude state-imposed “franchise” taxes on your LLC or annual reporting fees.

Fortunately for you, Ohio is one of about a dozen states that do not impose any annual reporting requirements (and associated fees) or any annual LLC franchise taxes. These franchise taxes are in addition to your normal state and federal income tax, and are imposed based on the LLC’s income or assets.

Some states impose a minimum franchise tax even if assets and income are 0 (e.g. California’s $800 minimum annual franchise tax).

Back To LLC Questions & Answers