I run a small handmade goods LLC in Vermont, mostly selling at summer farmers markets and fall craft fairs. Winter is dead for me—no sales, no income at all from December through March. Do I need to file anything with the state during those months? Will the LLC get dissolved or something? I'm current on my annual report and registered agent. Just want to make sure I'm not missing a filing requirement because of the zero-revenue stretch.
LLC compliance
What happens if my Vermont LLC has no income during the winter?
Vermont doesn't require a separate filing just because you had no income. The annual report is the main thing, and you said that's done. No revenue doesn't trigger dissolution.
I have a seasonal LLC too, and the only winter issue I’ve run into is the annual report due date. It’s not based on income, so zero months don’t change anything. You still have to file it on time.
What about taxes? Even with no income, do you still have to file a Vermont tax return for the LLC? I’ve heard different things about the minimum threshold.
Depends on how the LLC is taxed. If it’s a disregarded entity or partnership, the state return may not be required at the entity level, but the owner’s personal return still matters. If it’s an S-corp, that’s different. The annual report is separate from tax filings.
I should have mentioned it’s a single-member LLC, taxed as a sole prop. So does that mean I just file my personal Vermont return like usual, even if the business made nothing in winter?
Yes, for a single-member LLC you generally just report the business income on your personal return. No separate Vermont LLC return in most cases. Zero winter income doesn’t change that.
Not a tax pro, but I’d double-check the registered agent fee and annual report fee. Those are still due even if you sell nothing. The state cares about paperwork, not whether you made money that season.
That’s what I was getting at. The annual report is the thing that can get you in trouble if you skip it, not the lack of income. I’ve seen people confuse the two.
Does the LLC need to file a zero return with the state? I’m in a similar boat and was told by someone that a zero return is still required. Now I’m not sure.
For a single-member LLC taxed as a sole prop, Vermont generally doesn’t require a separate zero return for the LLC. But you should confirm with a tax professional because facts can vary. The annual report is the clear state filing.
That clears it up a lot. I’ll keep the annual report current and handle taxes on my personal return. Appreciate the help.