I've been researching this question and have been unable to find an answer. I am an LLC and will not have made $600 in my business, by the April 15 deadline to file quarterly taxes. Do I need to file a tax form, every quarter, showing that I have made no money (until I do, of course)?

I used to have to do that for state sales tax, in a former life.

__________________
Collaborative Business Support

The $600 number is not a guideline for you. It's a guideline for companies who pay out $600 or more to contractors to determine if they have to send 1099 forms.

The question for you is whether you have any expenses in 2011? Did you buy business cards, pay anything for a website, etc? If so, you may have a loss in your business for 2011, which may help you on your personal tax return.

__________________
Stacey B. Stahl, Owner/Virtual Assistant
CuttingEdgeVirtualAssistant.co m

The $600 is misleading because it is the amount that your client needs before they are required to send you a 1099 form. This does not mean that you do not have to report it. So even if you only billed and were paid for $200 you must still report that income.

You also should report any business expenses that you had. This may take your business to a loss but it is still reportable.

You should contact your accountant however should report any income (or loss) that you had for the tax season when filing your taxes.

Also, do not forget that federal taxes are not the only thing that you need to file, you may have state and local too. For business records I would file regardless of whether you have a profit or loss so that you are properly reporting your business income and losses.

__________________
Lee Drozak

Check out www.irs.gov for answers to many of your tax questions whether individual or business.

Sole proprietors would use schedule B when they file their 1040. I think 3 out of 5 years can be profitless to consider a business as a hobby.

The IRS website has the answers--especially if you don't have an accountant yet.

__________________
A L Camien

I would advise seeking the help of a registered accountant/ tax advisor who can fill you in on your obligations. At least that way you can rest easy and avoid fines and penalties.

Normally though you would have to file even if your company is running at a loss.

__________________
Sabrina L. Williams
Your Property and Admin Needs Made Simple

Originally Posted by alcbiz

Check out www.irs.gov for answers to many of your tax questions whether individual or business. Sole proprietors would use schedule B when they file their 1040. I think 3 out of 5 years can be profitless to consider a business as a hobby. The IRS website has the answers--especially if you don't have an accountant yet.

It's actually Schedule C not Schedule B. Schedule B is for Interest and Dividends.

__________________
Stacey B. Stahl, Owner/Virtual Assistant
CuttingEdgeVirtualAssistant.co m

Thank you to all who replied. You expressed what I was thinking, given my statement about my having to file a state sales tax form, even though I made no money for the quarter. I'm starting my business on less than the proverbial "shoe string" and need to gather my pennies, as they come in (which is very slowly) to pay for business expenses. I know that some accountants, as some attorneys, offer a free initial consultation. I will be taking advantage of that.

__________________
Collaborative Business Support