I am a small business owner, I did not bring in any income this year, do I still need to file taxes?

Question

I was told that as a sole proprietor owner I just file expenses on my own personal filing not as a business... any help from business overs out there?!?

Answer 1

Yes, you still have to file because the only way the IRS knows that you did not have any income this year is if you file.

And yes, as a sole proprietor you file a personal return, but you attach a Schedule C to reflect profit or loss from a small business.

We use Quick Books for our business software and TurboTax for tax preparation.

Answer 2

I would still file to establish the loss.

Current losses can be used to offset future profits through a provision in the tax code call a "Net Operating Loss".

Keep in mind that IRS wants to see profits in the near future or else your "business" could be declared a "hobby".

Answer 3

you want earned income credit? then yes. if you took any money out of your own pocket, itemize. wirte as much off as you can. fill out the long form.