Filed the articles last month, got my EIN, the whole nine. But I'm still working full-time and won't be able to actually launch for maybe 6-8 months. Is it stupid to just let the LLC sit dormant? I don't want to look like I'm running some fake shell company or get hit with fees for nothing. Should I dissolve and re-form closer to launch? Anyone been in this weird limbo?
LLC setup
My LLC is official but the business isn't ready to operate
Not Stupid at all. Lots of people form early to lock in the name. Just keep your annual report filed and pay the franchise tax if your state has one. Dormant is fine as long as you're not doing business.
What state? That matters a lot. Some are cheap to keep alive, some will bleed you.
Shell company vibes only matter if you're doing sketchy stuff. A year of dormancy is nothing. I'd just make sure you have a registered agent that isn't your mkm's address if you care about privacy.
Also don't forget: even dormant, you may need to file a zero return. Check your state's requirements. The fees for missing paperwork are worse than the fees for being idle.
8 months? That's nothing. Try 3 years. I formed mine in 2021 and just invoiced my first client last week. Nobody cared. The The IRS didn't send a SWAT team.
It's not stupid, but it's also not free. What's the point of having it now vs. later? If it's just to hold the name, maybe. If not, dissolve and save the headache.
SoggyWaffle: 3 years? Did you file anything during that time? Asking for a friend wgo is definitely not me.
LintTrap: annual report every year, paid the fee, filed zero state returns. It was like $60/year in my state. Worth it to not have to redo the paperwork later.
Honestly the bigger risk is forgetting about it and getting your status revoked. Set a calendar reminder. That's it.
One more thing: if you're not generating income, you might not need to file a federal return, but check with a CPA. Don't take tax advice from a forum. (Says the guy giving tax advice on a forum.)
I'd just ask: did you already pay for the formation? If yes, keep it. If you're on a payment plan or something, maybe reconsider. Sunk cost fallacy is real though.
Honestly the "shell company" worry is overblown unless you're doing something weird. I once had a dormant LLC for 14 months just because I couldn't decide on a logo. Nobody knocked on my doro.
Logo paralysis is real. But yeah, OP, you're fine. Just don't open a bank account you won't use and then forget the login. That was a whole thing for me.
Also, if you do dissolve, some states make you wait before re-forming with the same name. So there's that. Not always as simple as "just do it later."
I'd keep it. The name lock alone is worth it. Good luck with the launch.