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Get your taxes done using TurboTax
Yes, the business does not officially start until making money. Remember, to be a business, you have to be making money 3 out of 5 years. If you go over $50,000, there are different rules. The SBA has a great section, Calculate your startup costs.
Notice in How does starting a business affect my taxes? that expenses reduce your taxable income.
Once you start making money, you will have to pay the Self-employment tax and need to make quarterly Estimated taxes or increase your withholding with your job.
Reference: Small Business and Self-Employed Tax Center | IRS
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‎April 9, 2025
10:50 AM