Wondering if I need to file taxes for a company we started, we have $7000 in expenses but $0 sales/revenue?

[SweetieJean]

First, who exactly are "we?"  You might need to file a Partnership or other type of corporate return.  Is it an LLC?

[ColeenD3]

SweetieJean is correct. If you are a husband and wife, you would not qualify as a Husband and Wife Qualified Joint Venture if you have an LLC unless you live in a community property state.

1120:

Who Must File Unless exempt under section 501, all domestic corporations (including corporations in bankruptcy) must file an income tax return whether or not they have taxable income. Domestic corporations must file Form 1120, unless they are required, or elect to file a special return.

1065: 

Partnerships and corporations have different standards for filing an information return or income tax return.

• A domestic partnership must file an information return, unless it neither receives gross income nor pays or incurs any amount treated as a deduction or credit for federal tax purposes.
• A foreign partnership generally must file an information return if:
  • It has gross income effectively connected with the conduct of a trade or business within the United States,
  • It has gross income derived from sources in the United States, or
  • It is making an election, such as an election to amortize organization expenses.

1120S: 

• A domestic corporation (including a Subchapter S corporation) must file an income tax return whether it has taxable income or not, unless it's exempt from filing under section 501.

A Schedule C  for Sole Proprietorships is not required to file a return.

[mrsjrook]

It's my husband's business and yes, it's an LLC.

[mrsjrook]

We are in Washington, so we're a community property state.

[ColeenD3]

First, you are not required to file a return. However, you can take start-up costs.

Start up costs are those expenses incurred in planning and setting up the business, costs you incur before you open the door.

A portion of startup and organizational costs can be expensed (written off in your first year). The remainder can be amortized (written off over a period of 15 or more years).

Here is how it works:

Expenses paid or incurred after October 22, 2004: 

 - You can deduct up to $5,000 in startup and $5,000 organizational costs as current expenses if the costs are under $50,000, respectively.

 - You can choose to amortize startup and organizational costs greater than $5,000, respectively, (but less than $50,000, respectively) over a period of 15 years.

 - If your startup or your organizational costs are more than $50,000, respectively, the excess amount reduces the amount you can deduct.

If you are filing 2 schedule C forms, you split every income and expense. The forms maybe identical except for your names. It does not matter what the percentages are as long as:

• the LLC is wholly owned by the husband and wife as community property under state law
• no one else would be considered an owner for federal tax purposes, and
• the business is not otherwise treated as a corporation under federal law.