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Business Tax

Miami, FL |

I set up a corporation in florida, and i still have not sold any products for my clothing line, do I still have to report taxes, even though I have sold nothing?

Attorney Answers 3

Posted

If your question relates to income tax filings, you would likely be well served to file a return regardless of your income at the end of the year. The IRS may send a notice in 2009 if no return is filed, which will require a response on your part. That response, even if it only takes a short time to address, takes you away from your business.

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Posted

Starting a new business has its costs. For example, you spent money setting up the corporation and preparing your product line. These expenditures most likely will result in a tax loss for your first year of operation even though you have not begun selling your product. This loss can offset future profits. You should definitely file the tax return.

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Posted

Thanks for your question. Since I am an attorney, I cannot ethically give you specific legal advice on your situation, since you are not my client, but I can only provide you with general information that you may find helpful.

The short answer to your question is YES, you do need to file a tax return for every year that your corporation is in existence. There is a wealth of information on the IRS website for small business. You should spend some time reviewing the information there:

http://www.irs.gov/businesses/small/index.html

Without more information, the best advice that I can recommend to you is to contact a local tax planning attorney that can work with you on your unique situation. I would encourage you to discuss the facts of your case with a qualified attorney as soon as possible. This information is not intended to substitute for professional legal advice and does not create an attorney-client relationship. You should accept legal advice only from a licensed legal professional with whom you have an attorney-client relationship.

Best of luck to you,

Shawn C. Newman, Esq.
Attorney At Law
1881 NE 26th Street, Suite 212E
Wilton Manors, FL 33305
(877) 552-9385
Shawn@ShawnNewman.com

.

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