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abandoned LLC - troubles visiting US?

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tomwis

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Nov 14, 2020
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I have founded LLC in Wyoming some years back, but didn't do any business on it. Nothing, zero. Every year I get notifications from registering entity that I should hire registered agent + file annual tax report (and pay for it). I don't do it, the company just levitates there.

I plan to go to the US for holidays with my family. Being a citizen in EU I'm not required to apply for any visa, but should I be afraid I'll be denied entry to the US because of my misbehaviour with that LLC?
 
why misbehaviour?
If you stop paying︀ the LLC fees, it will simply be dissovled and case closed. Its a common way︁ of closing companies.

You can check yourself on the WY registry, it should be already︂ marked as dissolved.
 
Sounds like you had an Administrative︀ dissolution by taking no action on notices. Your now personally liable for any unpaid fees,︁ penalties etc.

https://monarchregisteredagent.com/understanding-administrative-dissolution-in-wyoming/

----quote start

Consequences of Administrative Dissolution:​

Loss of legal operation: Your︂ LLC can no longer legally operate in Wyoming, meaning any business activities conducted after dissolution︃ are unauthorized.

Forfeited liability protection: The limited liability shield offered by the LLC structure︄ is nullified, potentially exposing owners to personal liability for the company’s debts and obligations.

Potential legal issues: In some cases, owners remain unaware of their LLC’s dissolved status, unknowingly︅ operating without liability protection and potentially facing legal challenges.

----- quote end
 
Exactly, that "personally liable" I'm kind of worried about.

Not sure if that matters at⁠ all, but I'm travelling to other states, not Wyoming 🙂
 
Isn't there a 25k USD penalty when you don't report to the IRS?

I've never‌ owned a US LLC, but I'm pretty sure I've read it somewhere on this forum.‍
 
Yes, there are these penalties, but I have not heard of anyone speaking out about‌ receiving such a fine yet. However, every U.S. LLC is obligated to complete and submit‍ Form 5472. Failure to do so can result in a penalty of $25,000.

As mentioned,⁠ we have not had anyone on OCT reporting that they have received such a fine⁤ yet; at least, I have not seen it.

So, I think you can travel in⁣ and out of the U.S. without issue as long as you have not received any⁢ notification about such a penalty.
 
yeah there is but this stops once the LLC has⁠ been dissolved. You do one more in the year this has been the case.
 
Guide is below and its actually worse than you say....lol.

https://oandgaccounting.com/resourc...g-your-guide-to-forms-5472-and-proforma-1120/

https://www.thetaxadviser.com/issues/2021/jul/penalty-relief-forms-5471-5472-8865.html

---- quote start

A failure to timely file a Form 5472 is subject to‌ a $25,000 penalty per information return, plus an additional $25,000 for each month the failure‍ continues, beginning 90 days after the IRS notifies the taxpayer of the failure, with⁠ no maximum penalty.

---- quote end
 
@tomwis I can tell you that the US immigration/border patrol system isn't exactly linked up‌ to the IRS. I wish it were that smart sometimes. Assuming you are a EU‍ citizen with no requirement to apply for a US visa, and you're coming for holidays,⁠ I don't think they will quiz you about your LLC at point of entry (or⁤ point of exit). To these border agents, your money is your business (unless you come⁣ with a suitcase full of cash 😉 -> don't do that). Enjoy your time, but just⁢ remember if you go this month, the weather may be very very bad in certain︀ part of the country.

That said, my dumb question for the day is, if your︁ LLC is not generating any income, what taxes would be due on it? You're just︂ concerned about having to pay an accountant to file a zero-tax report, yes? (my knowledge︃ of LLC is super limited).
 
to circle back on this.︄
Once you stop paying the fee for the LLC it gets dissovled. So at max︅ youre due to file the 5472 and the other one 1102 or smth, of that︆ year (to be filed in the year thereafter) but only if it had cash disbursements.︇

It looks to me OP had only the initial irs forms missing for 1 year︈ (indicating the payment of the incorp fees). The next year the LLC gets auto-dissolved but︉ since he never had cash there, the form isnt needed.
 
LLC is supposed to pay $60 annual tax (flat⁤ fee), regardless of income.

It was founded in 2021 and incfile.com are still sending me⁣ emails about yearly fees.
 
Did you check the registrar? It should state "administratively dissolved " or⁠ smth like that.
 
could i abandon a delaware c corp in similar way, if there was not activity?‌
 
It looks like this. So am I safe travelling to the US? This⁣ "Delinquent" sounds fishy...
 
No one cares. Unless you also‍ have a tax debt.
 
How can I check that? Wyoming annual state tax is $60 and I'm sure I‍ have never paid this.
 
No one is going to chase‍ you on unpaid annual state tax of 60 bucks.

@Sols was most likely referring to⁠ federal (IRS) tax debt, which is whole another story
 
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