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?
 
tomwis said:
tomwis said:
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?
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why misbehaviour?
If you stop paying the LLC fees, it will simply be dissovled and case closed. Its a common way of closing companies.

You can check yourself on the WY registry, it should be already marked as dissolved.
 
tomwis said:
tomwis said:
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?
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Sounds like you had an Administrative 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: Your LLC can no longer legally operate in Wyoming, meaning any business activities conducted after dissolution are unauthorized.

Forfeited liability protection: The limited liability shield offered by the LLC structure 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, unknowingly operating without liability protection and potentially facing legal challenges.

----- quote end

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.
 
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.
 
ChadMuska said:
ChadMuska said:
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.
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yeah there is but this stops once the LLC has been dissolved. You do one more in the year this has been the case.
 
tomwis said:
tomwis said:
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.
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JackAlabama said:
JackAlabama said:
yeah there is but this stops once the LLC has been dissolved. You do one more in the year this has been the case.
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According to OP, it seems like he hasn't done it all though.
 
ChadMuska said:
ChadMuska said:
Isn't there a 25k USD penalty when you don't report to the IRS?
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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

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.
 
@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 certain part of the country.

That said, my dumb question for the day is, if your LLC is not generating any income, what taxes would be due on it? You're just concerned about having to pay an accountant to file a zero-tax report, yes? (my knowledge of LLC is super limited).
 
Oakgrove said:
Oakgrove said:
@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 certain part of the country.

That said, my dumb question for the day is, if your LLC is not generating any income, what taxes would be due on it? You're just concerned about having to pay an accountant to file a zero-tax report, yes? (my knowledge of LLC is super limited).
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to circle back on this.
Once you stop paying the fee for the LLC it gets dissovled. So at max youre due to file the 5472 and the other one 1102 or smth, of that 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 year (indicating the payment of the incorp fees). The next year the LLC gets auto-dissolved but since he never had cash there, the form isnt needed.
 
Oakgrove said:
Oakgrove said:
That said, my dumb question for the day is, if your LLC is not generating any income, what taxes would be due on it? You're just concerned about having to pay an accountant to file a zero-tax report, yes? (my knowledge of LLC is super limited).
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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.
 
tomwis said:
tomwis said:
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.
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Did you check the registrar? It should state "administratively dissolved " or smth like that.
 
JackAlabama said:
JackAlabama said:
Did you check the registrar? It should state "administratively dissolved " or smth like that.
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1733163148030.webp


It looks like this. So am I safe travelling to the US? This "Delinquent" sounds fishy...
 
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