| “ I have paid my Nevada Secretary of State fees (Annual List Filling + Business License) every year, but as I didn't make any money neither spend money from my business, I never filled federal corporate taxes yet.”----> Corps, S corps/ C coprs must file tax returns every year, regardless of revenue, profit or loss. You file Form 1120-S. The S corp should still file taxes on form 1120s, then you would report your personal loss(if you have), your NOL reported on your 1040, based on the percent of his ownership, from your K1, on a 1040 with a schedule E. You are probably still required to pay your state's minimum taxes, which are deductible on the federal return. This in turn can create a decuctible loss on his 1040. S corps are corporations that elect to pass corporate income, losses(your personal NOL), deductions and credit through to you for federal tax purposes. As an owner. SH of S corp, you report the flow-through of income and losses on your personal tax return and is assessed tax at your individual income tax rate. This would be very beneficial to you, especially if you had another source of income, because the loss would reduce income tax for him personally. You file your return with all zeros throughout the year and file your 1120S with all zeros.So, If you do not file them, you will probably get a letter requesting them. This is a tricky one since you have 3 governmental agencies at play: NV Division of Corporations ; NV Dept of Revenue , and the IRS. The late filing penalty for NV S-Corp returns for was $110/month per shareholder.
“I expect my business to become active in few months. So my question is: Will I have to pay penalties for those years without filling income tax (even if my business was inactive)?”--->As described above.
“ And, if it's the case, will it be more simple and save me money to just dissolve this business and start a new one?”---->It depends. Your S corp is inactive but you have not filed the tax returns due. Clearly, you are required to file a tax return or at least file an inactive NV Tax return. Leaving it active simply means that you are incurring a minimum tax liability every year! There typically should not be substantial fines and penalties from the IRS as you have zero income. Unfortunately, you will need to file an Inactive return for NV state and pay the minimum NV corporation tax along with interest and penalties that may be due! The first step in dissolving a corp is to determine whether or not dissolving your S corp is the best option. Before you close a company, make sure this is what your company really needs. Perhaps there are other options such as taking out loans starting a new product line, selling off shares, changing management, etc. Fortunately, shutting down an S corporation doesn't have to be that much work. For tax accounting purposes, you will need to file one last S corporation 1120S tax return, marking the return as "final." You should also technically file the form 966 with IRS. Any assets that your S Corp owns at the time of liquidation will in effect be distributed to you. If an asset's fair market value exceeds its depreciated basis, you will unfortunately need to show a gain on the distribution of the asset to the shareholder on the final corporate tax return.
“I would "formally dissolve your corporation" and attempt to pay prior taxes due. In other words, is there any legal consequences for a dormant S-Corp that had not filled taxes for 3 years in a row and than become active?”---->I do not think so. If you have not filed your annual NV Corporate franchise tax for certain number of years defined in the States corporation act, your corporation may be disloved by the NV Secretary of State and is no longer in existence. Please check it with the NV sec of state.
 | 
Linear Mode
