Navigating Tax Obligations When Your Business Earns $0
Hello, fellow entrepreneurs!
Launching a new venture can be an exhilarating experience, filled with potential and high hopes. However, circumstances can shift unexpectedly, causing plans to change. Earlier this year, I took all the necessary steps to set up my online business. I filed for my Doing Business As (DBA) name, acquired an Employer Identification Number (EIN), and established a business bank account. I was ready to dive into the entrepreneurial world. Yet, not long after, life threw us a curveball—my husband was laid off, and we decided to relocate to another state in the coming months.
This sudden change of events led me to reconsider my business plans. I ultimately decided to put my project on hold and reestablish it once we settled in our new location. In line with this decision, I am set to cancel my DBA shortly.
Now, onto my main concern: Should I file taxes even when my business generated no income? My venture was structured as a sole proprietorship, and although all the preparatory steps were in place, I did not conduct any business transactions during this period.
If you’re facing a similar situation, understanding your tax obligations is crucial. Despite the lack of income, staying informed and compliant with tax procedures ensures a smooth transition when you’re ready to launch anew.
I’d appreciate any insights or advice on handling this tax dilemma!
