So only giving an answer to point you to places that could help because this exact thing happened to me trying to start my business. I registered an LLC in Oct 2020 so in 4th quarter at the suggestion of a business lawyer I consulted with (I will never register a business in a 4th quarter ever again, I ended up filing for LLC termination when I filed federal taxes at the advice of my new tax advisor because I could see all the extra money we were paying for nothing, so I basically wasted money on an LLC to have it just for 1 quarter). The IRS was not the problem I filed sole prop, sched C, calculated expenses etc. that was the easy part but our state was a whole headache. Because we didn't have a location we had to use our physical address for all docs and the PO Box we set up was pointless. Our state imposed extra fees, and we were forced to file state taxes even though our state does not have personal income tax, once you have a business its a requirement where I live. On top of paying a lawyer money which we could've just set up the LLC ourselves through the state website for free, we had to jump through hoops proving our address should not be assessed as a business asset so we wouldn't owe more state property taxes on the business side come March 2022, and we received this request for information in Nov 2021 so it was a scramble. I wish the lawyer would have just explained the sole prop to us because we could have started as sole prop and then worked our way up to LLC + S Corp which is my personal goal because I want to W2 pay myself and write that off as an expense to lower my tax liability but I'm not there yet and I will only do so with a tax advisor if I can ever find one that is worth keeping . So all of that to say look for your state's official website, it usually ends in .gov and sometimes they have small business advocates or mentors, also go to your local chamber of commerce and ask if they have any small business tax experts they can refer you to because it is usually the extra fees, taxes, and state paperwork that is a headache more than the federal taxes surprisingly.
