Does my small business need to file a tax return?

by David Armano

Question by greg b: Does my small business need to file a tax return?

I am a small business owner and have been developing my company for the past year. Because I left my previous job to start this business I do not have a current income and because my company only recently officially "opened for business" we do not have a profit line. Do I need to file? What about the business expenses that I incur?




Best answer:

Answer by loandude
You would probably want to list your new business on a Schedule C. If recieved no money in the course of the business last year, that is OK. You would still want to write off any expenses you had in starting the business. You say you were not open for business until this year. You could still write off startup expenses that you incurred in tax year 2006. This would lower your tax burden on other income.

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