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If I have an LLC, do I have to file taxes?

Updated: Apr 20, 2023

Almost always yes.

If you are filing taxes because you had other income, such as employment income or are filing jointly with a spouse, then you must report business income/losses on your return regardless of how much income you earned. The only time you wouldn't report the business income/losses is if you did not engage in any business activity that year.

If your only source of income was the business, you'll be filing single, and no other filing requirement applies to you, then you only need to file a tax return if you had $400 or more in net self-employment income (income - expenses).

It may be tempting to say, "I didn't make that much last year, so I won't file". However, be aware that if you did earn more than $400, then failing to file a tax return and to report that income could result in you being charged with tax evasion and fraud.

It is always best to file a tax return even if your business made no income. Filing a tax return starts the clock on when the government can audit you. The IRS only has 3 years to audit tax returns (except in cases of fraud) from the date the return is filed. If you don't file a tax return at all, then the statute of limitation does not begin to run and you can be audited indefinitely.

Also, keep in mind if your business received any tax forms (1099NEC, 1099MISC, etc.), so did the IRS. If you do not file a tax return, they may file one for you, reporting the income on those forms without adjustment for expenses. Thus, it's always best to file a tax return then to wait and see if the government will do it for you.


Have an LLC and lots of questions about filing your taxes? We've got the answers. Let our tax professionals help you avoid any tax pitfalls this tax season. Call us at (612) 440-3988 or email to schedule an appointment.

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