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S-Corp with no activity in the last 10 years


weaverdoan

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Hello everyone,

I have a new client who told me for the last 10 years he filed form 1020-S with no activities. Does he need to file his corporate tax return (actually LLC elected S-Corp) if he has no activity?

He doesn't think he will have any activity in the future, but he wants to keep the LLC name that he registered. Therefore, he is OK with keep on filing it on a yearly basis.

Thanks so much for your help

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Keeping the LLC Name is a state registration function, so as long he he renews his state registration and pays the related fees the name continues.

So filing a final return does not impact the Name. In addition, the EIN should be closed to avoid fraud etc.

Later if he wanted to activate the LLC as an S Corporation, it would be like starting over, applying for a new EIN etc.

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