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got it. so for future reference and to make a final conclusion, does the below sound correct?

- say we start a business in 2025 this year and only have pre-launch startup costs

- at the end of 2025 the business opens and starts operating (this is software business that offers free software with options to pay and upgrade). we are now incurring marketing and operating expenses.
- no paying customers have subscribed in 2025, but we've had expenses to promote the software and operate it.
- we are now in 2026 and we've had the first customers pay and we have some small revenue, but the expenses are still larger. this is how all 2026 goes.

conclusion:

1) 2026 will be the first year to report this small business as a disregarded entity on owners Schedule-C with startup and operating expenses from 2025 and 2026. As well as revenue from 2026.

or

2) 2025 will be the first year to report it on Schedule-C with no revenue and only startup and operating costs.