Launching an Amazon FBA store
Products are not available online yet
Purchased LLC and other business expenses
Me and my sister are the only employees
If you were actively engaged in the business before 12/31/23, then you report your expenses, even though you didn't earn money. You will have a loss that you can carry forward to deduct against future profits.
If you weren't actively engaged in business and were only setting it up, then you hold your startup expenses and file them in the first year that you file the business.
It depends. If your business was operational in 2023 then answer that question yes, but If your business will not be operational until 2024, you can wait. Timing is important when deducting business expenses. For Start-up Business expenses you can deduct them in the year your business is operational. If your business will not be operational until 2024, you can wait to deduct the expenses when the business starts.
If you would like more information about start-up business costs, see the article below:
If you were actively engaged in the business before 12/31/23, then you report your expenses, even though you didn't earn money. You will have a loss that you can carry forward to deduct against future profits.
If you weren't actively engaged in business and were only setting it up, then you hold your startup expenses and file them in the first year that you file the business.
What happened if I start (register) an LLC in 2023, but we don't have any movement, just open the LLC, do I need to fill the taxes for 2023?
No. You file taxes for a business that is doing business. Your business is not operational until 2024 so you won't file a tax return for it until then. Any expenses you have for 2023 can be used as start up expenses on your 2024 return. Read the article that @LeticiaF1 has posted above.
@jcrivasc If you were not "open for business" on or before Dec 31 of the tax year, then a federal tax return is not required. I can't speak for a state return. But as far as I know, that would not be required either.
@lindsey-torres I just want to clarify a few things. Not that I need to. But it "looks" like clarification is called for here.
Launching an Amazon FBA store
Products are not available online yet
Purchased LLC and other business expenses
If you were not "open for business" on or before Dec 31 of the tax year, you have nothing to report on any tax return. However, keep track of your expenses. Those can be claimed as "startup costs" in the tax year you do open for business. It does not matter in what year those startup costs were incurred either.
Me and my sister are the only employees
If the business ia a multi-member LLC that has "NOT" elected to be treated like a corporation for tax purposes, then the business is a pass-through entity in the eyes of the IRS, and the owners of the multi-member LLC can not be employees. If this is your situation, then under no circumstances will either of you be issued a W-2.
With a partnership/multi-member LLC you complete and file a completely separate tax return on IRS Form 1065-Partnership/Multi-Member LLC Tax return. Also, the 1065 return is due March 15 of 2024 per the IRS schedule I just looked at. Be aware that the late filing penalty is $205 per month, per partner. So one day late and you're looking at a $410 late filing penalty.
The partnership/multi-member LLC will issue each partner/owner a K-1, which each will need in order to complete their personal 1040 tax return.
For the business, you have to use Turbotax Business to complete and file the 1065. (Not the same as Home & Business). The TurboTax Business program is not available as an online product, or for MACs. Its for the Windows operating system only.