Yes. You should file your sole proprietorship business if you were actively engaged in business. The IRS requires you to file a complete and accurate tax return.
You are allowed to claim a loss — and it’s OK to have expenses and no income — especially if this is your first year. However, the IRS can disallow future losses if you don’t make a profit in three of every five years.
Here’s how to tell the difference between a hobby and a business for tax purposes
If you were never actively in business then you can write off your start-up expenses in the year when you actually start operating your business.
For example, if you printed up business cards, signed up for a web hosting plan, and bought office equipment but never tried to meet any clients or finished your website then you weren’t actively conducting business and should not write off expenses.
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