Los Angeles, CA asked in Tax Law and Business Law for California

Q: I have a small business that has zero profits and zero losses and zero activity. Do I need to file a tax return?

I created the company in 2010 but have literally not done anything with it as it was intentionally supposed to be a side business. I haven't earned any profits, incurred losses, or done any activity with the business. Based on advice from H&R block, I filed my past tax returns for this company for 2010 to 2014 tax returns. I have yet to file one for the years after 2014. I am the only member of the company. My question is if I intend to dissolve it this year do I need to file any past and current tax returns and pay the filing fees given that there's zero profits, zero losses, and zero activity?

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1 Lawyer Answer
Answered
  • Tax Law Lawyer
  • Los Angeles, CA
  • Licensed in California

A: You dissolve a business when it is not a sole proprietorship. See

http://www.zflegal.com/services/tax-and-legal-implications-of-businesses-and-incorporation/

The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. Neither is it intended for solicitation purposes. For specific advice, please consult an appropriate attorney in person. Good luck. Zaher Fallahi, Business and Tax Attorney, CPA.

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