LLC with Zero Income

Forum|Forum|11 months ago
April 9, 2025
2 replies
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I formed an online consulting services LLC in CT in June 2024. There were no sales or revenue in 2024. I had expenses of registration and costs for subscriptions, etc.

Do I need to file a Schedule C if I did not have any income from my LLC in 2024?

Do I get any credit for my expenses?

Will it be the same for State v Federal?

Ask the Experts - Tax Due - April 2025

AmyC

Employee

If your LLC is filing a Sch C:

1. It isn't filed until you have income

2. you will keep adding up expenses of "start up" until you have income. Then, you will add your bucket of "start up" expenses to your return. As long as your start up expenses are below $50,000 you can write off up to $5,000 the first year and amortize the rest.

3. Yes, same for state to start with.

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Rockpowwer

I had a similar situation but I stared the business as disregarded entity LLC a couple year back. It only had losses and expenses until 2024. I’ve always filed those expenses in my schedule C. Was that not correct ? Those expenses offset other incomes like from w2.

RobertB4444

That was technically not correct. But if you never got called on it then you got lucky and since you have income for this year you're good to go going forward.

@Rockpowwer

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Mike9241

has your business started? this usually requires some action to alert potential clients that your open. if not, even your startup expenses aren't currently deductible.

Rockpowwer

yes the business started in the same year as startup costs incurred. started means operational and open to clients but there was no revenue. this is a software business that was fully operational and incurring operational and advertising expenses but the software was free for a while to attract customers and not have any walls to gets free customers that can later be charged. the customers started to pay 1-2years later.
so the question is, can this sole-proprietor business be added to schedule-c in the first year of operations, with deductible expenses only, or not until 1-2 years later when first purchase was made by a customer that created the first revenue item?

PatriciaV

Employee

Yes. If you were open and ready to provide products & services to your customers, you would report all activity for that tax year, even if you had no income (or a loss).

@Rockpowwer

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