I started my own business (C-Corp) with no revenue and no FTEs, but $20K in costs. What do I need to do for taxes?

Forum|Forum|2 years ago
February 28, 2024
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Hello!

I started my own business (Incorporated in Delaware) late in 2023. I have ~$20K of costs in 2023 (paid to 1099 independent contractors), no FTEs, and no revenue. I need to both (1) File business taxes, and (2) file personal taxes (all income in Ohio). What should I do to file my business taxes? And how does that impact my personal taxes?

Best,

Sean

Ask the Experts - SelfEmployed - Feb 2024

Best answer by RobertB4444

As a C Corp you are required to file form 1120. That is a completely separate tax return from your personal return. Ohio has a similar form and filing the federal return will take care of Ohio as well.

Going into next year when you will assumedly make more money it might be a good idea to look into taking an S-election which will complicate your paperwork life a lot but will save you a bunch in taxes. Here's an article about it.

@SeanW13

[Edited 02/29/24 07:01 PST]

RobertB4444Answer

@SeanW13

[Edited 02/29/24 07:01 PST]

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SeanW13Author

Thanks so much @RobertB4444! Does this mean that I do not need to file a separate tax return for the business? Or what do I need to do to file that?

RobertB4444

Yes! Sorry, you will need to file a form 1120 for your C-corp.

TurboTax has the resources to file business returns for your form 1120 at this link. You'll file that return and then file your personal return separately.

Since the C-corp has a loss for this year then it doesn't make much difference but going forward you should still sit down with an advisor to discuss whether or not an S-election is for you.

@SeanW13

[Edited 02/29/24 07:11 AM PST]

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