Starter Business

6 replies
73 views

Hello in 2023 I completed the prerequisites to start a business

- Obtained EIN

- Registered name with State

- Added an SAM.gov account in hopes of obtaining benefits for the business

After I completed the prerequisites I have not done any other actions toward the business, it's not open, no customers or services were provided. Do I file the business on my taxes?

Anonymous_

Level 15

You would not file a return for the business until such time as it is actually open for business.

Is this a separate entity or did you register a DBA with your personal name?

jennifertolonAuthor

Level 2

Separate entity I registered the LLC

Anonymous_

Level 15

@jennifertolon wrote:

Separate entity I registered the LLC

It would not be treated as a separate entity for federal income tax purposes if you are the sole member of the LLC and did not make an election to be treated as a corporation for federal income tax purposes.

DawnC

Employee Tax Expert

No. You don't file a tax return until your business is operational.

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Opus 17

Level 15

Note that whenever you start ongoing business activities (recruiting customers, advertising, doing jobs) and file your first business tax return (schedule C or something else depending on the type of business), you can include your start-up costs as business expenses. Equipment or assets are listed in the usual way for depreciation or expensing, and other startup expenses may be deducted the first year (if less than $5000) or partly deducted the first year and partly spread out over 15 years (if more than $5000). So keep records of your startup expenses.