i own an inactive corporation do i own any taxes?
August 9, 2010 
5 Comments
i formed a corporation about 2 year ago. it has been on a shelf ever since i formed it. it has no tax no, no employees, no bank accounts, no financial transactions, no assets and no debts. i am waiting for it to become 5 years old so i can be eligible to bid for government contract jobs; they dont give contracts to brand-new companies. My question is do i owe any taxes or should i have done any kind of annual paper work.
i meant to say do i owe any taxes, not do i own any taxes
its a nevada corporation
its a nevada corporation
the last part of its name is INC so i think its a c-corp
Dr Deth. we are talking about the US govt, you know, the one that will pay $500 for a wal-mart hammer. why cant i bid on contracts with a company with no financial history. i got my personal history. all of a sudden they will become competent when they review my proposal? these people buy toilet paper for $10 per roll.
You would owe no federal income tax but are still required to file a return.
You would be required to file a return for the state where the corporation operates. In my state, California, "foreign corporations," those chartered in other states, as well domestic corporations have to pay at least $800 to keep the corporate charter alive.
you did not say what country or state your in, but, there will state corporation tax liabilities that must be paid yearly, sales or no sales, profit or no profit in many states that fee is about $500.00 USD a year. Better talk to your tax account and get things up to date. Good luck
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Well, it depends. First, is it a C or an S Corp? In the state of NJ, S Corps are required to pay a minimum CBT of $270 regardless of activity. However, if you have a C-Corp, you at least have to file an inactive return at the federal level. Essentially it’s all 0s. You have to check with whatever state you are in however for thier specific guidelines
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Public Accountant.
you still need to file annual tax returns – did you do that? I can’t imagine you’re going to get government contracts just because you a have a 5 yr old corporate shell. Won’t they ask for financial statements?
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You would owe no federal income tax but are still required to file a return.
You would be required to file a return for the state where the corporation operates. In my state, California, "foreign corporations," those chartered in other states, as well domestic corporations have to pay at least $800 to keep the corporate charter alive.
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First, you will need to pay your states annual filing fee.
Regarding government contracts (at least at the federal level), it doesn’t matter how long your company has been in business. You can be awarded a federal government contract so long as you can show that you have the ability and resources to fulfill the tasks within the statement of work. If you have a business that has done nothing in 5 years will most definitely work against you (unless you have a good contact on the inside).
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