Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Aug 30, 2023 9:02:10 AM

New Business

I started a new business, how does that affect my taxes

0 3 749
3 Replies
Employee Tax Expert
Aug 30, 2023 9:13:50 AM

Hello @Lori25880 

Thank you for joining us today and congratulations on your new adventure.

I would need more information to answer appropriately.  Is it a sole proprietor, S Corp, C Corp, Partnership?  Depending the on the type of entity your business is.

 

If it is a sole proprietorship, you will report your gross income, cost of goods sold (if applicable) and then business expenses on your Schedule C   On your personal tax return Form 1040.  If you have a profit, you will have to pay self employment tax.  Here is an article that will provide you with more information:  Tax Guide for Sole Proprietors 

I will be happy to provide further information or articles if it is a different entity.  I look forward to your response!

Holly W

Level 1
Aug 30, 2023 10:04:26 AM

Thank you for the reply! I started an LLC for an ecommerce store in May. I am the only one on it and I have no employees. At this point I have expenses but very little income. I work full time while an am trying to launch my business.

Employee Tax Expert
Aug 30, 2023 10:41:24 AM

@Lori25880 

That is a lot to take on and you should be proud of yourself.  From the information provided, you will want to report your income and expenses on the Schedule C within your personal Tax return Form 1040.  

Keep up the good work, you've got this!