Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.
01-29-2017 12:52 PM
Solved! Go to Solution.
01-29-2017 05:08 PM
Welcome to the community.
What you can do is run the business as a sole proprietor and report it that way on your taxes. You can always change it to an LLC later, and if you're the sole owner your tax return will pretty much keep being done the same way.
On your tax return, fill out a Schedule C (Profit or Loss from Business) using your social security number and the name of the business. You do not need an employer number. On a Schedule C you report your income from the business and then deduct your expenses. Since you haven't earned anything yet you will only enter your expenses that you had and you will have a loss for 2016. The loss will carry over to your 1040, page 1, and will be deductible against your other income. Remember, you can deduct a maximum of $5,000 in start-up exenses.
When and if you become an LLC you will still file a Schedule C so long as you are the sole owner of the business. An LLC with multiple owners is a little bit different.
For your business registration, in most states it is not expensive to register a sole proprietorship. It costs $59 in my home state of Florida.
If you have any other questions I'll be glad to help you out.
Senior Tax Advisor (Tampa, FL)
01-30-2017 12:36 AM