Tax advice last year was to not include expenses until we have income. Can we include expenses from prior years or will we need to amend when we start getting income?
This date is based on facts and circumstances.
Based on the limited facts, it does not appear you have "started" your business yet.
However, it is not when you start getting income. It is when you begin the process of generating income.
You need to file a return when the trade or business has actually started, regardless of whether you have any income.
If you have not officially started the trade or business, then the expenses are capitalized as either start-up expenses, organizational expenses or possibly fixed assets that will be depreciated once you begin the business.
As a side note, this sounds like a Partnership (Multi-Member LLC). That is a separate tax return and if the business was 'open' in 2023, that tax return was due yesterday.
Can you define “started”? Last year we worked with pattern making and a manufacturer to get a sample order and we’re still working on setting up our payment processing and website. We haven’t sold any products yet. A tax advisor last year said we didn’t have to file anything until we started getting income.
This date is based on facts and circumstances.
Based on the limited facts, it does not appear you have "started" your business yet.
However, it is not when you start getting income. It is when you begin the process of generating income.