<p>Hi. I know there are self-employed threads here already but this is a little different. While filling out the FAFSA application the question of self-employment and business ownership came up. Here's the rub. I had an LLC and was in business for myself doing construction. I injured myself a few years ago and have not been working. The LLC still exists on the State records but I have done zero business for the last few years. Zero meaning that my 2013 Fed taxes don't even have a Schedule C because there was no income ( no sales, no profit, no income period ) to report. Why do I still have the LLC you ask.....sentimental..I thought I would heal and get it going again...but that hasn't happened. I assume I need to answer yes to the self-employed/ business ownership question? Doesn't seem like it will make a difference since there is no income ( and no deductions to add back) Right? Or...should I just file a dissolution with my State and give up the LLC before filling out the FAFSA? Thanks all, </p>
<p>What state?</p>
<p>Small business with less than 100 employees is not required to be included in FAFSA.
You can also dissolve the LLC now to simplify the matter if you apply to private colleges.</p>
<p>Wait! How could you fill out FAFSA now? It will not be available until January 2015 for school year 2015-2016.</p>
<p>Your LLC is probably inactive with the state if you haven’t paid the registration fee. You aren’t self employed if you haven’t worked during the tax year. You aren’t taking loses or expenses. Don’t make more trouble for yourself by complicating things.</p>
<p>Sorry all, just got in…and Holy Smokes did I goof! Thanks to coolweather’s question of how could I fill out FAFSA this early I actually talked to my wife using full sentences and realized it’s the CSS that we’re doing for early acceptance! All of your replies when you thought it was FAFSA are not wasted though! I now know what’s coming for January. Sooo…anyway…what’s the scoop applying my situation to the CSS??</p>
<p>DrGoogle - State is CT.</p>
<p>coolweather - nice catch, thanks. Thought about mailing dissolution forms before sending CSS but in CT that involves the Dept of Revenue Services which then will wake up to the back Business tax that we have to pay here. I need that dog to lie a bit longer!</p>
<p>twoinanddone - I looked it up on our Secretary of State website and until I file and pay for a formal dissolution it’s still an active registered business. So I understand that not working during the tax year is really unemployed not self-employed but for the sake of accuracy I still own a business, right? I would just rather fill the form out properly…there’s no money to shuffle so no sense hiding something right. </p>
<p>Yes. I would not worry because there is no money passed through in the last years. However, I think you should explain in the special circumstance section about your situation so that there will no question from the FA office.</p>
<p>I looks like you have to file 1065 for the past years and pay some penalty.</p>
<p><a href=“LegalZoom: Start Your Business, Form Your LLC or INC”>LegalZoom: Start Your Business, Form Your LLC or INC;
<p>Hey coolweather, thanks for the replies. The IRS1065 that you mention is for partnerships, I’m not one. On that legal zoom page the disregarded entity is more of what applies to me. I do my taxes thru turbo tax and I do list my LLC but because it makes no money no schedule C is generated. I’m all by the book.</p>
<p>^ Good for you.</p>