Expert: Arthur Naman - 3/28/2011

Question
Dear,

I have a question regarding tax for small firm. My firm is registered for LLC in Oklahoma. Our firm won business plan competition worth $ 21,000. Except this we don't have any form of earnings. There are some form of contribution in form of capital contribution.

Almost all of the award money are spent for Research and development and organizational set up cost. We have not started any operation in terms of production or sales.

So my question is do we need to file tax. Please recommend me if there is any place i can go to seek more help.

Thank you.

-Amir

Answer
The corporate tax laws normally required filing tax returns  based on when a federal ID number and State id number are requested. Those returns may show no income or expenses, only capitalized expenditures, but they would still have to be filed.

I am not licensed in Oklahoma and accordingly do not wish to provide advice on that subject, although I expect what I just said applies.

Normally the best people to ask these types of questions are local CPAs, certified public accountants. Enrolled agent may also be of assistance. Those references are not free, however.