Should I file business taxes when expenses exceed profit?

Hello,

I have registered an LLC for my small business 1 year ago. I didn't file any taxes on the last 15th April because my business expenses exceed the net profit. I'm a little bit worried about this.

According to the IRS, you may not file taxes if your profit is below $400, and that's my case. But, should I send a tax report/filing to show why I didn't pay taxes?

All of the business is running online. I accept payments online through payment processors like PayPal. I guess that payment processors send reports to the IRS regarding their users' transactions, so IRS will know which business have to pay taxes. Am I right?

I would highly appreciate it if someone could guide me through this.

Thank you.

 

Wow! You're going to heed the advice given on DP for that? If you made less than four hundred dollars, and the IRS says you don't need to let them know jack sht about that. Then don't bother them. That is the way I would do it, based on what you have given in your post. I do everything with cash, and sometimes that's hard to keep track of. You just be sure to keep your records in order so you can add stuff up.

They only reason you should feel bad about not filing, is if you owe them money - then there's going to be some pain.

PS. Paypal cannot tell the IRS what money was earned or if you worked for it. Maybe somebody gave you sixty bux for your birthday! It wouldn't be right for PayPal to make calls like that.

 

If you are losing money, you owe no tax. It is as simple as that.

You must pay taxes quarterly if you expect to owe at least $1,000 in taxes during the course of the year.

You must pay Social Security tax if your income exceeds $400 in a year.

But you have no profits and thus no income. Thus you have no reason to file a tax return. Furthermore, your losses can be carried forward to the future to offset future income. (Assuming all your losses are genuine.)

http://www.irs.gov/uac/Do-I-have-to-File-a-Tax-Return?
http://www.irs.gov/Filing
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Estimated-Taxes

 

I never heard of an LLC that doesnt have to file - don't those rules only apply to individuals?

i would file so they have a record of the losses, especially if i am carrying them over to next year - plus if the IRS receive copies of 1099s, etc. you need to show the deductions that make up that loss

 

If an LLC only has one owner (known as a “member”), the Internal Revenue Service automatically disregards it for federal income tax purposes. The LLC’s member reports the LLC’s income and expenses on his or her personal tax return.

If an LLC has two or more members, the Internal Revenue Service automatically treats it as a partnership. The LLC files an informational partnership tax return and the members also report the LLC’s income and expenses on their personal tax returns.https://www.legalzoom.com/articles/do-i-need-to-file-a-tax-return-for-an-llc-with-no-activity