- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
My LLC is a passion project - expected impact on taxes?
I started a small web business (LLC) more as a retirement / passion project / hobby project so that I could learn new skills and keep my mind active. Never expected it to be big volume or very (if at all) profitable. So far, I've invested $10,800 in various aspects of the business (web design, brochures, business cards, samples, advertising, office supplies, etc) and I have gross sales YTD 2019 of $1,500, with net to me (after revenue sharing with my suppliers) of $500. This is about what I'd expected YTD - no matter that it's not a big business or generating lots of profit, I'm having fun. I don't expect much more additional big expenses going forward, except for reprinting brochures, monthly web hosting fees, possibly some advertising.
1/3 of the expenses were incurred before my official LLC 'go live date' of March 1 2019.
Given these financials, I assume the loss on the year will be substantial; can I deduct all these expenses in year 1, or because some of the expenses were incurred before my 'go live' date, I have to spread it out over 2 years?
Is TT Home & Business the right version for me?