[shirtbuzz]

So I own an LLC and I haven't been profitable this year I am actually -5500. This is due to a few mistakes being a new business owner and buying too much inventory/supplies. Since I had no gains I didn't report any taxes during the year.

My question is what... should I expect for my return, Will it be a problem with my accountant since I didn't report my taxes throughout the year. This is my first year being in business so Although I kept all my transactions I didn't keep a quick books or a spread sheet of anything. This was more of a spare time business for me.

I had about 15000 in expenses including inventory, supplies, office rent etc and only profited about 9000.

Any advice or help would be appreciated.

 

[binki]

With an LLC profit/loss flows to your personal income tax. You will basically reduce your income on your 1040 by 5500. You will still need to file the LLC tax form as well.

I don't know what you mean by report taxes throughout the year, you do it at the end of the year. If you needed to have withholdings (you don't right now) you would submit a quarterly estimated tax. You don't need to do this since you lost money.

BTW, if you ever become profitable you should consider changing to a C-Corp. A C-Corp offers benefits like no other form of business. You basically can have unlimited cash and non cash benefits that are not taxable and you can have retained earnings so your profit does not go to your personal tax.

Forget about the evil words 'Double Taxation'. It doesn't exist except when you pay dividends which you don't have to do.

I wrote this a number of years ago. I may need to update it. http://www.t-shirtforums.com/t-shirt-articles/t17054.html

Make sure you talk to your accountant about all of this and have a great new year.

 

[Rezorios]

How much did you earn in 2020?

 

[Sidiusss]

I hope that your income has improved in the time that has passed since your initial post on this thread. I am really sorry that you've started your business with losses, but what is more important, from my point of view, is that you learn from your mistakes and improve your results, which I'm sure that you have achieved already. I don't think that you would have any problem with your accountant if you didn't report your taxes throughout the year. Anyway, maybe you should ask guys from szwedaconsulting.com for financial advice. They are very good at it and competent enough to give you the best possible advice.

 

[Astroj]

we all hope so, I also hope my income will grow this year as well d

 

[binki]

Yes, you fill that out every quarter but I believe that is related to payroll