Question

I have a question about how to file business taxes with no income — Is filing business taxes with no income necessary?

Answer

Regarding how to file business taxes with no income, you shouldn’t file if:

  • You weren’t actively engaged in a trade or business.
  • You were preparing to begin your business.

You can either deduct or amortize start-up expenses once your business begins rather than filing business taxes with no income.

If you were actively engaged in your trade or business but didn’t receive income, then you should file and claim your expenses. Ex: You’re paid upon completion of your work.

You should still file, even if you haven’t received income yet. You can show a loss on Schedule C when filing taxes with no income to offset other income.

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