Tax requirements of an LLC

[LockDownLance]

Guys, have sort of a dumbed down question (so my brain will understand it).

Take a guy who has gotten a W2 from his employer and had pretty simple tax returns his whole life... Guy then files LLC with the state for his own company.

At that point, what ' legal responsibilities' did the guy create for himself assuming he never conducts any business or makes a dollar? I mean, by filing for an LLC, you are now obligated to do... what exactly? in terms of tax, forms, etc. etc.

Sorry for just a generic question but I'm always trying to figure out what goes with what as far as tax liability.

Thanks in advance!

-Lance

[JohnGalt]

If you haven't conducted any business then you don't need to do anything. If you earn money then it is claimed on your personal tax return. Depending on your state laws you might need to file each year to keep the LLC alive. In MD we need to file a personal property return each year and send along $300 to keep the business entity alive. If you don't file the PPT and pay the $300 then the LLC just dies.

[PhillM]

You can also file as a S-Corp.

[GotLiveChat]

Some states require you continually renew LLC status, and the LLC doesn't just disappear if you stop paying the yearly fees (you actually need to file another form to dissolve the LLC (and send more $ to do so)).
Not sure why to be a LLC if not taking in revenue, unless the revenue's coming later. If that's the case, he/she should still consider taking deductions (and end up as a business loss for the year) to reduce taxable income.