New business

[Ccardoza21]

I registered my business, received my EIN and opened bank account. I still have not started selling my product so no revenue earned. If end up not selling anything this year, would I need to still fill my tax for the business ? 

[FranklinF]

If you business is a partnership or corporation, then  you MUST file a Tax Return for your Business even if there is little or no activity. Partnerships file Form1065, S-Corporation file form 1120-S, and C-Corporations file form 1120.

If you business is a sole proprietorship and you had no income, it may still benefit you to file a Tax Return if you were actively engaged in the business activity and your expenses were ordinary and necessary for the operation of your business. the form you will file in this case will be a Schedule C that will be part of your 1040 (Individual Tax Return).

https://www.irs.gov/faqs/small-business-self-employed-other-business/entities/entities-4

[shirleyh88]

Hello Ccardoza21,

Thank you for your question. I am happy to assist you.

It depends on the situation that you are in:

1. If you are a single-member LLC (sole proprietor), you do not need to file business tax if there is no activity during the year.
2.  If you are a multi-member LLC (a partnership), you are expected by the IRS to file a Partnership return even though there is no activity.
3. If you have elected to be taxed as an S-Corporation, you are required to file Form 1120-S even though you do not have activity from the S-Corporation during the year.

Please refer to the link below for reference:

https://ttlc.intuit.com/community/business-taxes/discussion/if-i-own-an-llc-but-have-not-made-any-mo...

Please let me know if you have any questions.

Thank you,

Shirleyh88

[shirleyh88]

Hello Ccardoza21,

My apologies – there is a correction to my post regarding filing a return as a Partnership (Form 1065).

As a partnership, you must file an informational return on Form 1065, unless the partnership does not receive any income or incur any expenses during the tax year. Please refer to the IRS link below:

https://www.irs.gov/faqs/small-business-self-employed-other-business/entities/entities-

4#:~:text=A%20domestic%20partnership%20must%20file,for%20federal%20income%20tax%20purposes

Please let me know if you have any questions.

Thank you,

Shirleyh88