I formed a sole member LLC (in Virginia) and I have not earned any...

[jd88]

...income. What am I supposed to do about tax? I came up with a very good business idea that without thinking it through (which was a mistake), I formed an LLC with the state (VA) about three months ago. However, I am having some emergency family situations I need to deal with, and I don't think I could start this business anytime soon. I am wondering what I should do for tax-filing, and what I am required to fill in. I have not sold anything or provided any service with this business.

And also, should I keep the business name/entity or close the LLC? And if closing the LLC, what is the procedure?

Thank you very much for reading. I appreciate your help.

[esnagel]

I'm not certified to answer this at all. With that being said...

Keep the corporation. If nothing else, you can write-off the appropriate % of your house that you use for the business as losses. For example, I use 10% of my home for business. So I write-off 10% of my heat, electric, water, and any home improvements.

Since you didn't do anything with your business, aside from filing it (also a write-off), your business will take a loss this year.

However, (and this is where you & I differ), because you're an LLC, I don't think it affects your personal taxes at all. I'm a DBA, so if my business had a loss (it did in '98, when I started) it's an expense on my personal income taxes.

So this long-winded answer is... I don't think keeping the LLC will hurt you, just make sure you file the proper paperwork to keep it going. You never know when you'll have the opportunity to continue with your idea.