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April 4, 2020
Question

Started the process of a new business, obtained an EIN number and opened accounts, but have not made any further movement toward business yet. How do I file this?

  • April 4, 2020
  • 2 replies
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2 replies

Carl11_2
Employee
April 4, 2020

Assuming your business is a sole proprietorship or single member LLC (A business with only ***ONE*** owner) if your business was not officially "open for business" in 2019, then you have absolutely positively nothing what-so-ever to report on your 2019 tax return concerning this business. Not one single thing or penny.

 

RobertG
April 4, 2020

If you had no economic activity in 2019 you do not need to enter anything on your return.

 

Economic activity includes income and expenses.  Start up expenses incurred in 2019 can be deducted when economic activity starts.

 

Start up costs would include all expenses that incurred during the process of creating your new business. See: Startup Business Tax Tips

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