Employee starting a business (no income)

Cornpup
Cornpup Member Posts: 1 Newcomer
in Filing my taxes

I have W2 (2025) from my fulltime employer and just recently registered a small business (dec 2025). Still working on a lot of permits until today hence business is still on planning stage and no income. Need help on steps on how to declare the small business part since its already registered.

It is an LLC and I am one of 2 owners. TY!

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Best Answers

  • hrmbassociate
    hrmbassociate Member Posts: 19 Level 4
    Answer ✓

    You file your W-2 like normal. The LLC still has to be reported even with no income, usually a partnership return with zero activity and K-1s. If there were startup expenses, those can be listed. A CPA helps a lot the first year.

  • kiarab
    kiarab FreeTaxUSA Agent Posts: 223 image
    edited January 22 Answer ✓

    Hello Cornpup,

    Generally, if there is more than one owner, this is a partnership. (https://www.irs.gov/businesses/small-businesses-self-employed/business-structures) FreeTaxUSA does not support the business filing of a Partnership, but if you get a Schedule K-1 from the partnership, then you would report that on your individual income tax return.

    For Schedule C (self-employment income), I do know that you would not need to report your expenses until the year you are open for business. So if for 2025, you only had start up costs and were not actively trying to get income until 2026, then you wouldn't report anything until you file your 2026 tax return.
    https://community.freetaxusa.com/kb/articles/98-should-i-report-my-new-business-if-i-did-not-open-for-business-this-year

    I am not as familiar with partnerships, so it may be a good idea to consult with someone more familiar dealing with partnerships.

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