Business Went No Where, Taxes Owed

by sourcaffeine. Posted on Sep 17, 2020    1    2

I registered an LLC in Texas for preparation of business. Turns out I jumped the gun because the whole business was a horrible idea. As someone who's never handled the legal side of a business, I took no action after registering and was under the assumption no further action needed to be taken.

Got a letter in the mail today for failure to file a return. The estimated taxes owed are around $1200. I assume this is an assigned value due to no return to go off of.

The business made no revenue, no sales, it was completely stagnate after formation.

Am I required to pay the taxes. I see some basic instructions about filing a disagreement, but I don't think that applies here? Should I pay the taxes, and if I do what can I do to make sure I don't have further taxes with this company in the future since it's a dead company?


looking4euterpe 1

File the missing return(s). If they haven't received a return, it's possible the $1200 figure is their guestimate based on some average for your type of business.

If you had no revenue, you might owe a penalty for late filing, plus the interest - but chances are it's a lot less than $1200.

After you get it cleared up, take the proper steps to legally close the business - filing final returns, etc.

EDIT: This website might help you navigate the required returns. And this one gives you the steps for legally terminating the business.

clhiod 1

You should go to the Texas comptroller website, register for web filing, and log in and file the informational report for the year you didn’t file. It will assess a $50 late filing fee. Going forward you will need to file by May 15 to avoid this fee. The $1200 is assessed because they had no info to go off of, after you didn’t file the report.