Question by QUESTION GIRL: Do I Still Need to File Taxes for my Small Business if I DID NOT make any Income?
if i didn’t one red cent for my small business for 08 do i still need to file taxes for the business or whatever
Best answer:
Answer by Tim K
Yes. Even if you made no profit. If you had a loss it may be deductible from income from other sources. I was self employed over 20 years. Some years I had no taxable income from my business.
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If you are a sole proprietor, then you are not required to file if you did not earn $ 400 or more. For any other business entity, you must file tax return.
You are self employed. You must file your tax return if your self employed income is $ 400 or more. You will report your income and expenses on schedule C or C-EZ (Form 1040). This income is subject to SE tax at 15.3%. Read: http://taxipay.blogspot.com/2008/04/tax-filing-by-self-employed-sole.html
Dear Girl: Did you have income? There is a difference between making a profit and having income. If you had income I would file Sch. C. If not you will not have a filing requirement (see IRS Pub. 17 page 5). If you are incorporated see IRS Pub. 541 and Sch. 1120 Instructions. Sch. C allows you to list income and deductions for your business.
This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provide. Click on my profile to read more.
Errol Quinn Enrolled Agent Master Tax Advisor