Question

Starter Business

Forum|Forum|2 years ago
March 13, 2024
3 replies
0 views

Hello in 2023 I completed the prerequisites to start a business

- Obtained EIN

- Registered name with State

- Added an SAM.gov account in hopes of obtaining benefits for the business

After I completed the prerequisites I have not done any other actions toward the business, it's not open, no customers or services were provided. Do I file the business on my taxes?

A

Anonymous_

Employee

You would not file a return for the business until such time as it is actually open for business.

Is this a separate entity or did you register a DBA with your personal name?

J

jennifertolonAuthor

Separate entity I registered the LLC

A

Anonymous_

Employee

@jennifertolon wrote:

Separate entity I registered the LLC

It would not be treated as a separate entity for federal income tax purposes if you are the sole member of the LLC and did not make an election to be treated as a corporation for federal income tax purposes.

DawnC

Employee

No. You don't file a tax return until your business is operational.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

O

Opus 17

Employee

Note that whenever you start ongoing business activities (recruiting customers, advertising, doing jobs) and file your first business tax return (schedule C or something else depending on the type of business), you can include your start-up costs as business expenses. Equipment or assets are listed in the usual way for depreciation or expensing, and other startup expenses may be deducted the first year (if less than $5000) or partly deducted the first year and partly spread out over 15 years (if more than $5000). So keep records of your startup expenses.