RJO
Level 2

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?