AmyC
Expert Alumni

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

@Rockpowwer 

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