I started with a direct sales company in December 2016 (LuLaRoe). I purchased inventory and supplies in December 2016. However, I did not receive the inventory and start selling until January 2017.

I did receive a 1099 (I think that what it was) from LuLaRoe. It says I purchased inventory, but made $0 since I did not sell anything in 2016. Do I file as a small business or claim everything next year?