I opened a 1 member LLC in NY State in 2002. Since 2004 until now, the LLC is basically dormant without business activities, and therefore no income or loss. My questions are as follow:

1. Do I owe any Fixed Minimum Tax / Filing Fee to NY State before 2007, which is the year that tax law changed in NY State. Before 2007, the Fixed Dollar Minimum Tax is calculated by number of members in LLC?

2. Do I owe any Fixed Minimum Tax / Filing Fee to NY State after 2007?

3. If I do owe NY State Tax, is there any penalty on top of it as well?

“1. Do I owe any Fixed Minimum Tax / Filing Fee to NY State before 2007, which is the year that tax law changed in NY State. Before 2007, the Fixed Dollar Minimum Tax is calculated by number of members in LLC?” ---->I assume that your SMLLC is a disregarded entiry. You started a Single Member LLC back in 2002 and have no income/revenue, only expenses. Then you need to report your expenses on 1040 Sch C for NOL dedcutions; a dormant LLC that has no income, gain, loss or deduction from NY sources has to file and pay the fee.
“ Do I owe any Fixed Minimum Tax / Filing Fee to NY State after 2007?”---->Yes. For tax years beginning after 2007, every LLC that is a disregarded entity, SMLLC, I mean, for federal income tax purposes; that has any income, gain, loss or deduction derived from New York sources is required to pay a filing fee. The filing fee is due within 30 days of the last day of the tax year; In addition, for tax years beginning after 2007, the filing fee will be based on the New York source gross income of the LLC /LLP for the tax year immediately preceding the tax year for which the fee is due. Under previous law, the fee was based on the number of partners or members in the LLC. If the LLC/LLP does not have any New York source gross income for the tax year immediately preceding the tax year for which the fee is due and the LLC/ LLP has current year New York source gross income, gain, loss or deduction, the LLC or LLP will pay the minimum filing fee of $25. LLCs that are disregarded entities for federal income tax purposes and have NYS income, gain, loss or deduction will pay the minimum fee of $25.00. Also extended for tax years beginning in 2005 and 2006 is the $100 filing fee payable by a single-member LLC (SMLLC) that is a disregarded entity for federal income tax purposes and that has income, gain, loss, or deductions derived from New York sources. Additionally, no income tax credits may be applied against the filing fee. The 2008-2009 New York State Budget Act has once again modified both the fixed-dollar rninimum tax in the Article 9-A general business corporation franchise tax and the limited liability company/limited liability partnership (LLC/LLP) filing fee.
“3. If I do owe NY State Tax, is there any penalty on top of it as well?”---->Yes, there is; most states tax LLC profits the same way the IRS does: The LLC owners pay taxes to the state on their personal returns, while the LLC itself does not pay a state tax. In addition, some states impose an annual LLC fee that is not income-related. This may be called a "franchise tax," an "annual registration fee" or a "renewal fee." In most states, the fee is about $100, in the case of California exacts a hefty $800 "minimum franchise tax" per year from LLCs.

Many thnx for your answers.

For Question (1), then, from 2002 to 2007 how much is the per year Filing Fee for dormant LLC in NY State?

For Question (2), you mentioned that after 2007 there's the $25 filling fee is for LLC that has NY Source income, gain, or loss. If my LLC doesn't have any NY Source income, gain, loss, then do I still need to pay the $25 filling fee? How about the $100 filling fee you also mentioned? That's on top of the $25? I'm a little confused for the $100 fee, please don't mind to kindly provide more details.

Many thnx.

“For Question (1), then, from 2002 to 2007 how much is the per year Filing Fee for dormant LLC in NY State?”---->Not sure; New York LLCs/LLPs (as well as non-New York LLCs/LLPs filing to do business in New York) were required to pay a per member/partner “owner” fee of $50 times the number of owners on the last day of the entity’s year-end. Henceforth, the per-owner fee was $100, with a minimum annual fee of $500 (up from $325). For the first time since LLCs/LLPs were created in New York in 1994, single member limited liability companies (SMLLC) would be required to pay an annual fee; however, the minimum fee for an SMLLC would be $100, not $500. The higher fees were due to expire Jan. 1, 2005.
Please visit the NYS Wbsite: http://www.tax.ny.gov/pdf/2010/inc/it204lli_2010.pdf
Youcan contact Personal Income Tax Information Center: (518) 457-5181 for more information. If the LLC or LLP is registered with the Department of State, contact them at (518) 474-4750 to terminate the registration.
“For Question (2), you mentioned that after 2007 there's the $25 filling fee is for LLC that has NY Source income, gain, or loss. If my LLC doesn't have any NY Source income, gain, loss, then do I still need to pay the $25 filling fee?”---->Yes you do; You should enter $0 on line 4 of FORM IT-204-LL and pay a $25 fee with your return. The filing fees for tax years beginning on or after January 1, 2008( after 2007) is $25; If the LLC or LLP does not have any New York source gross income from the preceding tax year. In addition, LLCs that are disregarded entities for federal income tax purposes are subject to a filing fee of $25 for tax years beginning on or after January 1, 2008.
Please visit the NYS Website here: http://www.tax.ny.gov/pdf/2008/inc/it204lli_2008.pdf
“How about the $100 filling fee you also mentioned? That's on top of the $25?”---->Please visit the Ebsite here: http://www.tax.ny.gov/pdf/memos/income/m05_5i.pdf and read “Limited liability company (LLC), limited liability partnership (LLP), and single-member LLC disregarded entity filing fees extended for tax years 2005 and 2006.” Section.

Many thnx again for your very prompt reply. It really helps a lot. I just want to sum up what you have said and make sure I understand you correctly.

For Year 2002-2004, for SMLLC, the annual fee is $100 regardless whether the LLC has any gain or loss.

For Year 2005-2007, from the document link you provided (m05_5i.pdf), it says, "Also extended for tax years beginning in 2005 and 2006 is the $100 filing fee payable by a single-member LLC (SMLLC) that is a disregarded entity for federal income tax purposes and that has income, gain, loss, or deductions derived from New York sources. The return and payment are due within 30 days of the last day of the tax year."

Therefore, for 2005-2007, if the SMLLC doesn't have any income, gain, loss or deductions derived from NY sources, is the $100 filing Fee still applicable?

For Year 2008 to now, SMLLC has annual fee of $25.

Please kindly let me know if the above understandings are correct.

Also, I did not realized and therefore have not paid any of these annual fees since 2002, would there be any penalty & interest incurred for the fees?

And last but not least, would you know if there's any similar minimum dollar tax or annual fees from New York City (not New York State) as well? If so, would you please kindly provide similar info. Many thnx.

“Therefore, for 2005-2007, if the SMLLC doesn't have any income, gain, loss or deductions derived from NY sources, is the $100 filing Fee still applicable?For Year 2008 to now, SMLLC has annual fee of $25.”---> Correct; The amount of the filing fee for an LLC that is treated as a disregarded entity for federal income tax purposes was $25 from 2008-2010. The increased filing fees for LLCs and LLPs that were enacted in 2003 have been extended for tax years beginning in 2005 and 2006. The per-owner fee was $100 filing fee payable by a single-member LLC (SMLLC) that is a disregarded entity for federal income tax purposes Please visit the NYS Wbsite: http://www.tax.ny.gov/pdf/2005/inc/it204lli_2005.pdf
“Also, I did not realized and therefore have not paid any of these annual fees since 2002, would there be any penalty & interest incurred for the fees?”---> Correct; as said above. Most states tax LLC profits the same way the IRS does: The LLC owners pay taxes to the state on their personal returns, while the LLC itself does not pay a state tax. An information return is one that is filed with the IRS but doesn't have a tax attached to it. Income tax returns for LLC's, and Partnerships are all information returns because they are flow through entities and the taxes are paid by the owners of the entities on their personal tax returns. So these returns simply report to or inform the IRS about the income and expenses of the entity. In the past if you filed an information return late, you may or may not have received a penalty. Most of the time, you could simply write a letter and get the penalty waived. (Thoughuntil now, it hasn't been strictly enforced)The IRS has noticed that this penalty has the potential to bring in millions of dollars of revenue so, they are not only sending more letters for penalties for filing late, but they have upped the penalty from $400 a month per owner to $1000 a month per owner, and they are not waiving the penalties. I guess a long asyou need help in filing an extension, you need to let your accountant know one week ahead of the due date so that they can get confirmation that the extension was filed and accepted. You also need to contact Dept of Revenue of your state for state late penalties for filing info. returns of your SMLLC: The New York State Department of Taxation and Finance.
“And last but not least, would you know if there's any similar minimum dollar tax or annual fees from New York City (not New York State) as well?”---->Yes it does;effective for taxable years beginning after 2008 new law of 2009(NYC 2009 business act) repals the old $300 minimum tax and replaces it with a new graduated fixed dollar minimum tax. All businesses whether incorporated or unincorporated operating in New York City must pay the appropriate business taxes in NYC; A five to twenty-five percent (5% to 25%) penalty is added to the net tax owed if your annual return is late. Penalties may be waived if the failure to file is due to a reasonable cause or if there is a satisfactory record of past City tax payments. If the return is filed more than 60 days late, you will be assessed a late filing penalty. You may contact City Of New York City Finance Department Taxpayer Assistance Division Forms-City Business Taxes Finance Department Taxpayer Assistance Division:
25 Elm Pl
Brooklyn, NY 11201
(718) 935-6739