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Hello,

Back in January I started a small business. It was a miserable failure, and I ended it in June. Before I wash my hands of the whole thing, I want to make sure that I'm squared away with the IRS.

Early on my banker asked if I had a CPA, and when I said I didn't, she gave me the name of a Jackson Hewitt rep. I just called her and was told that all she does is tax returns and that she's not a CPA. So I'm not sure what that was all about.

Bottom line, I spent a largish sum of money, keeping good receipts for everything, and my business earned the opposite of a largish sum of revenue. I am 100% confident that I don't owe tax of any kind, but I'm not clear on A) if I need to file something, or B) how do I let the powers-that-be now that I'm done with the whole thing.

Thanks in advance.
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Back in January I started a small business.

First things first. How was the business organized? Did you form a corporation? An LLC? Nothing at all?

What you did at the time you started the business will determine what you need to do with the IRS when it ends.

--Peter
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Back in January I started a small business.

First things first. How was the business organized? Did you form a corporation? An LLC? Nothing at all?

What you did at the time you started the business will determine what you need to do with the IRS when it ends.


And, often more importantly, what you need to with your state tax department.

Ira
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First things first. How was the business organized? Did you form a corporation? An LLC? Nothing at all?

I guess nothing at all.

In January I entered a contract with another company to publish a weekly entertainment paper, using their name, paying a one-time fee, and I agreed to subscribe to the content they provided.

A week or so later, I went down to the county courthouse and filed a DBA form and paid thirteen bucks, on the advice of my business banker.
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It sounds like you will be liable for self-employment tax. I will leave it up to the professionals here to explain to you how to prepare your taxes. Really, they are a piece of cake.

Donna
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I guess nothing at all.

Since you didn't form any kind of entity, wrapping up is pretty simple. As far as the IRS is concerned, you just report your business income and expenses on your next tax return. Those will go on Schedule C.

--Peter
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Since you didn't form any kind of entity, wrapping up is pretty simple. As far as the IRS is concerned, you just report your business income and expenses on your next tax return. Those will go on Schedule C.

Easy enough. Thank you.
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