Myth: I Only Report My Business When It Earns Money

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Some small business owners believe that if the activity doesn't earn much money or no money at all, then they don't have to report it on a tax return.

Myth: I Don't Report a Business Until It Earns Money |

Schedule C Business

Earnings are the amount you have left over after paying your expenses. If you don't earn more than $400 from all your sole proprietor businesses, you must file Schedule C, but you won't have to file Schedule SE.

See Instructions for Schedule C and Schedule SE (Page 1)

Form 1065 Business

If you have no income and no expenses considered as deductions or credits under federal tax law, then you need not file.

See Instructions for Form 1065, Page 4

Form 1120-S Business

No matter the amount of income or expenses, you must file the tax return for each tax year that the S-corp entity is active.

See Instructions for Form 1120S, Page 2

Form 1120 Business

Corporations must file a tax return regardless of having any taxable income to report.

See Instructions for Form 1120, Page 2

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DISCLAIMER: Please consult with your accountant, attorney and financial advisor before implementing any information displayed on this website. DIY research does not replace the advice of a licensed professional who has thoroughly reviewed your file.