42. NEW CORP IN DECEMBER

Updated: Feb 10



I opened a corporation in December of last year. I did not have any operations or activities. Do I need to file taxes for my business?

Yes and No


YES

While opening your corporation you completed 2 steps process:

Registration with the state you are doing your business Registration with the Internal Revenue Service to obtain your Employer Identification Number (EIN), commonly known as a TAX ID.


So, If you completed both registrations last year, opened a bank account, and did not have any activity you are REQUIRED to file business taxes. The reason is, that IRS does not know that you did not have any activity, and they are expecting to receive your return.


If you will not do it you will receive a letter with a penalty, much later. The penalty is $190 per month for not filing on time.

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