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If my business isn't starting until next year, do I still need to file tax forms for this year?
I just formed an S corporation in November, but will not start the business until next year.

Asked by pt22
Posted: Tuesday, November 06, 2007  |  Found in Legal Issues


More answers by Nina Kaufman
Answer by Nina Kaufman
Unfortunately, yes. Even if it's just a partial tax year, you are responsible for filing tax forms for each year that your business is in existence -- regardless of whether it is generating revenue. Rather than form an entity so close to the end of the year, entrepreneurs might want to wait until January, and start the tax year afresh, unless they have a compelling reason to do otherwise . . . which they should discuss with their attorney and accountant.
Nina Kaufman has a New York City-based boutique law practice and is president of Wise Counsel Press LLC, which produces legal information products for entrepreneurs. She writes the Making It Legal blog and the Business Law Advisor column for WomenEntrepreneur.com.

Note: This response is for your general information only. Be sure to consult with an attorney regarding your particular situation to get the advice you need.



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