Question

If I'm not a registered business

Forum|Forum|4 years ago
October 27, 2021
1 reply
0 views

I'm just starting and did not make over the $400 requirement. I'm doing business as company name is not registered as a LLC. Can I still claim the expenses use to get the business off the ground? If I can, how long can I claim expenses without claiming a profit?

A

AmitaR

First you need to ask yourself, what are your intentions? Are you doing this activity as a Business or as a Hobby? Please see link below to IRS article to understand the difference. If you are in it as a Hobby then the rules are different for deducting those expenses. But if you're in it truly for the sake of business and to make money, then yes, you should be able to deduct your expenses.

https://www.irs.gov/newsroom/earning-side-income-is-it-a-hobby-or-a-business

Hope this helps.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"