I have a personal and a business account, but only income from my full time job,what shoud I file?

Question

I have a full time job, and I recently opened a business account for my new side business. But I decided not to start the business because of some reason. After that, I did not close my business account for future use, and I deposit some money to my business account several times (because I thought personal and business acoount mean same to me) . but now I am questioning myself that when I file a tax return, is there any problem on tax return, or shoud I just file W-2 only, or 1040? or together?
And, should I report tax even though I have no income from my side business? In other words, someone with opening a new business account must file a tax report even though no income produced? Please advise me if you have any knowledge on this field. Thank you.
P.S. : I opened a business account after I got the fictitious business name and I have no business licence bucause this is home based small business.

Answer 1

If you are paper filing your tax return you would file your W-2 along with your 1040. You can never just file a W-2 as your tax return. As far as the side business goes, you should report the activity on Schedule C for your 1040 tax return. Even if you did not have any income, you can deduct any expenses that you incurred for setting up the business, but they have to be expenses related to the business. If you wnat to try running a business in the future, you really should keep your personal monies separate from the business monies. The IRS doesn't like it when people mix business with personal monies.

Answer 2

Having a business account will not have any effect on the way you report your tax return. If you have not generated any income from the business and don't plan on taking any expenses that are associated with starting a business you will
only file your 1040. If you have a business you are required to file a Schedule C on every business entity that you form.

I also operate a small business and have learned the tax laws by learning from my accountant and tax professionals.
If you do operate a business you must be profit motivated in order to list your expenses as a legal deduction on the Schedule C.

It is also a good idea to have a seperate business account when operating a home business. This shows the IRS that you are trying to operate your business for profit, also keep oganized records showing a accurate account of all expenses. These simple steps pay off in the end!

Good Luck
Scott
http://www.fdipays.com
http://www.notaxburden.com

Answer 3

You have to file a 1040 (or 1040-A or 1040-EZ) with your W-2; you can't just file a W-2.

If you had no income and no expenses in your business then you would not report any business income to the IRS. If the business account earned interest then it could be argued that is business income, but since you made no real effort to make money I would list that as regular interest.

Answer 4

a business checking acct will cost you in monthly service charges - don't worry about filing and tax return for the business - just shut down and absorb the cost - since you really didn't get the business started, the IRS might balk at any deductions

Answer 5

Just file for personal, technically you don't have a legit business without a license. Close the accoutn asap! How did you get a business name w/o getting a license?