promotion image of download ymail app
Promoted

When do you file taxes for a small business?

For instance, I plan on starting my own cosmetic line/ limited liability company but I'm not sure when to start filing taxes. Do I begin filing taxes once I reach a certain amount of sales? How do I know when It's time to actually start filing them??

7 Answers

Relevance
  • Pam
    Lv 6
    9 months ago

    You file taxes the very next tax season after you start your business whether you made sales or not. The government EXPECTS new businesses to not turn a profit for a period of 3 years, so show your losses in your tax returns and keep it moving. Still purchase your products and inventory but since your sales don't outweigh your expenses, you will declare a loss and not have to pay anything. Use a CPA, not your brother in law's uncle's wife's cousin roommate.

    • Commenter avatarLog in to reply to the answers
  • Judy
    Lv 7
    9 months ago

    When your gross income is over $400 for the year, if that's your only income. If you have other income, then from the first dollar. That;s for federal. State and local are probably from the first dollar.

    • Commenter avatarLog in to reply to the answers
  • 9 months ago

    You consult a local tax practitioner to set you on the right patch because at present you are clueless.

    • Commenter avatarLog in to reply to the answers
  • 9 months ago

    You file them in the spring, like normal. $400 income for the year is when you have to file, if that is your only income.

    • Commenter avatarLog in to reply to the answers
  • What do you think of the answers? You can sign in to give your opinion on the answer.
  • 9 months ago

    Assuming you are in the USA, you can begin filing taxes as soon as you want. This will allow you to write off start up losses (in accordance with tax regulations).

    You are required to file taxes when you have $400 in income (not profit).

    • Commenter avatarLog in to reply to the answers
  • 9 months ago

    If you are talking about collected sales tax, usually you report monthly. If you are talking about income tax, you should file annually until you start making enough to have to pay estimated taxes quarterly through the year. The IRS.gov website and the Small Business Administration have guides for the self employed and those operating small businesses.

    • Commenter avatarLog in to reply to the answers
  • Maxi
    Lv 7
    9 months ago

    You read the laws with regards to filing taxes in the country you live in, so research........ so eg USA There's no government agency that requires business owners register their self-employment. You do, however, have to meet all the registration requirements any business does in your city, county or state.

    • Commenter avatarLog in to reply to the answers
Still have questions? Get answers by asking now.