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I started a LLC in Texas, never activated a business, found…

Customer Question
I started a LLC...

I started a LLC in Texas, never activated a business, found out 3 years later that the business owed taxes in my LLC name, What can I do to desolve the business and not pay taxes on a business that never started?

Accountant's Assistant: Can you tell me what state the LLC is registered in?

Texas

Accountant's Assistant: Has anything been officially filed? If so, what?

I only filled for the business LLC through legal zoom

Accountant's Assistant: Anything else you want the lawyer to know before I connect you?

Nothing else to tel

Submitted: 1 month ago.Category: Tax
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Answered in 4 days by:
3/19/2018
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 month ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,012
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

Hi. My name’s Lane …

I hold a law degree (J.D.), with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, to clients on three continents, since 1986.

I’m reading your question now.

Bear with me a moment while I type up my response.

….

Then if you have further questions we can go from there.

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 month ago

Please don't shoot the messenger here but in Texas, filing the franchise tax return is required regardless of activity.

...

Luckily the only amount owed (becasue you would have not had any tax due at all) is the $50 ate fee for each year and a little bit of interest.

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See this: http://file:///C:/Users/Precision/Desktop/98-918.pdf

...

State taxing jurisdictions are increasingly turning to responsible person laws to collect unpaid liabilities. This trend is due in part to the increase in company bankruptcies during the last few years. From 2007 until now, the number of U.S. companies filing for Chapter 7 or Chapter 11 bankruptcy almost doubled.

...

You'll have o give me a little time to research whether Texas uses responsible person to be able to pierce the corporate veil created by the LLC.

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Given the aggressive nature ot Texas (as compared to most other states - California, Texas, NY, SC and NJ are especially aggressive in their collection efforts) would not be surprised to find that this is so.

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I DID work in one case where they used the responsible person laws to collect SALES tax from an owner by suing and garnishing wages.

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If you'd like me to opt out and see if someone else can help I'd be glad to ... but again I want to look specifically at the Texas code.

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In SOME states, as long as you never intend to use that entity again, all the state can do is attach assets owned BY the LLC or the LLC itself.

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And again, the numbers may not be nearly as bad as you think.

...

Let me know if you'd like me to opt out

...

La e

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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,012
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Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

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