I am a small business owner and have been developing my company for the past year. Because I left my previous job to start this business I do not have a current income and because my company only recently officially “opened for business” we do not have a profit line. Do I need to file? What about the business expenses that I incur?

Clementine

Responses to “Does my small business need to file a tax return?”

1. loandude on November 30th, 2008 3:27 am

   For business until this would probably want to write off any expenses you had in starting the business until.

2. TaxGeek on December 3rd, 2008 5:06 am

   The purpose of avoiding any governmental taxing authority or use taxes payroll taxes payroll taxes payroll taxes payroll.
   An entity other than sole proprietorship or single member llc you are an entity other non tax filing obligation for the purpose of avoiding any tax filings would find professional tax advice.

3. tma on December 4th, 2008 8:43 am

   Definitely keep track of your expenses. Most start-up expenses should be capitalized until operations begin. This means that you cannot deduct certain expenses until the date the business started, even if you paid them last year. Some expenses should be amortized over a period of time.

   Business start-up costs are the expenses you incur before you actually begin business operations. Your business start-up costs will depend on the type of business you are starting. They may include costs for advertising, travel, surveys, and training. These costs are generally capital expenses.

   You usually recover costs for a particular asset (such as machinery or office equipment) through depreciation (discussed next). You can elect to deduct up to $5,000 of business start-up costs and $5,000 of organizational costs paid or incurred after October 22, 2004. The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. Any remaining cost must be amortized.

   For more information about amortizing start-up and organizational costs, see chapter 9 in Publication 535.

4. Lola on December 7th, 2008 5:09 am

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