Small Business - No Sales. Do I still need to file?

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    Small Business - No Sales. Do I still need to file?

    I started a small business (LLC) early last year. I have been in business and perusing leads. However, to this point I have made no sales, but have invested $12,000 of my own money and taken no salary. Do I need to file a corporate tax return for 2011? Thanks in advance.
     
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    Re: Small Business - No Sales. Do I still need to file?

    In Response to Small Business - No Sales. Do I still need to file?:
    I started a small business (LLC) early last year. I have been in business and perusing leads. However, to this point I have made no sales, but have invested $12,000 of my own money and taken no salary. Do I need to file a corporate tax return for 2011? Thanks in advance.
    Posted by Wally16


    Yes you should file a return to take the losses.  However it may not be a corporate tax return since you state it is an LLC.

    Question : Is it a single member LLC?  If yes, did you elect to to be a corporation?  If you elected to be a corporation, then you file a Form 1120, an 1120S if you also elected to be an S corporation.  If you did not elect to be a corporation, the business is reported on Sch C of your Form 1040 as a sole proprietorship.

    If you have another person with an ownership interest in the LLC, then you have a partnership and need to file a partnership return, for 1065.

    I hope this helps in figuring out what you need to file.

    Barbara Damon, CPA
    Tax Principal
    Edelstein & Company, LLP
     
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