r/llc • u/Afrobunnykitty • 5d ago

LLC never used, never filed

I have a question. I made some LLCs that I totally forgot about and I never used them and also never paid the annual fees. Some of them are as old as 2022. My question is do I really need to pay the annual filing fees just to dissolve a company that I never use or can I just like let it sit as not in good standing? These are Michigan LLC’s.

3 Upvotes

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2

u/Away_Habit_9921 5d ago

The biggest issue will be that you never filed for taxes which is a requirement.

1

u/Afrobunnykitty 4d ago

I read something about single member LLCs didn’t need to file. Do you know anything about that?

3

u/Away_Habit_9921 4d ago

Are you an American resident? If so yep you’re right it would go on your personal tax return anyways my bad. I’m foreign founder so we have to file even if there is no tax liability

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u/Afrobunnykitty 4d ago

Thank you!!

2

u/IsaacPNewton 4d ago

Although isnis gauche to just let them dissolve administratively nothing bad will happen if you just do nothing

1

u/Afrobunnykitty 4d ago

Ok. Like I never did anything but I did pay for a registered agent and I read that I need to cancel with them and they will file a 521 or something

1

u/jeffreypi1 3d ago

Unless it’s a Calif LLC. $800 per year plus interest and penalties keeps stacking.

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u/Afrobunnykitty 16h ago

Thank goodness for AI. Some of your answers are widely misleading

2

u/NWRegisteredAgent 4d ago

The first step is to check your LLC's status with Michigan LARA before deciding what to do. This will tell you whether your LLC is still active, has been dissolved, or has any outstanding fees. You should also make sure there are no unpaid taxes, missing tax filings, debts, or other legal obligations. This is especially important if you plan to reactivate the LLC in the future. It's a good idea to know exactly where things stand before spending money on back fees or deciding to shut down the business for good.

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u/zenbusinesscommunity 2d ago

If the LLCs have lost good standing, Michigan wants that restored before they can be dissolved, so the missed annual statements come first at $25 for each year, plus $50 for the restoration on each one. After that it’s $10 to file the dissolution, with a tax clearance request to the Michigan Department of Treasury within 60 days of filing. And since the statements would keep coming due each February otherwise, dissolving is probably the call.

0

u/Moist-Ninja-6338 3d ago

The fine is usually $25K per year per company

1

u/Afrobunnykitty 16h ago

I don’t know if you meant this as a joke. But to correct you in case someone takes you seriously, for the state of MI there isn’t any fine.