Accounting, Payroll & Pension Issues/LLC

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Expert: Ed McFarland - 3/8/2007


Question
We're thinking of starting an LLC.  My concern is the business flopping & not earning a dime so....
Do you pay taxes if your business does not create revenue?
What happens if you earn revenue before you're LLC is legally formed?

Answer
You only owe taxes on money you get, income. What might get is a tax loss from your efforts.

While you are operating as a sole proprietorship, you would report the activity on your 1040 using the Schedule C. If you earn money, it would be taxed at your rate.

Good luck

Accounting, Payroll & Pension Issues

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Ed McFarland

Expertise

Over 20 years of experience as a CFO, Controller and now Consultant to small businesses. Dealt with 401k, 403b, deferred comp plans, key man issues, disablity, business continuation plans, HSA plans and other benefit issues.

Experience

Management experience in Financial Services, Manufacturing, Media, Logistics. Taught graduate and undergraduate business courses.

Education/Credentials
MBA

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