Starter Business

[jennifertolon]

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?

[tagteam]

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?

[DawnC]

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

[jennifertolon]

Separate entity I registered the LLC 

[Opus 17]

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.  

[tagteam]

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@jennifertolon wrote:

Separate entity I registered the LLC 

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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.

[CatinaT1]

If you have not opened for business yet and are just preparing, there is nothing to file for the business. Keep track of your expenses though because like Opus 17 said you will be able to deduct those expenses as start-up costs when you do open for business.

It sounds like you are a sole proprietor that has become an LLC but not elected to be taxed as an S-Corp. This would require filing a 2553 to request this tax treatment.

If this is the case, when you do open for business, you income and expenses would be reported with your personal return on a Schedule C.

These links will be helpful to you: 

Self-Employed Tax Center  

Tax information for Businesses