Hi,
I started a laser engraving business in 2021. It took a lot of set up and training through out the year on the machine and setting up a website. We only had sales for 2021 that were around $600. We had the payment of the machine (approx. $6k), inventory (approx. $15k), expenses to set up an online commerce business, advertising, normal business expenses. The business was set up as an LLC, but my husband & I are the "owners". We both work our full time jobs and work this on the side. We were told if we didn't have much income, we would probably just include the income and expenses on our personal taxes (Schedule C). We will have a very LARGE loss, obviously! Does that create any issues? We are taking nothing, obviously out of the company and when it does start making money, then we were told it might benefit us to file taxes for the business separately.
Another question is should or can you take all the start-up costs and the small revenue (that was earned in 4th qtr. only) and start the business for tax reasons in 2022?
