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Do I Need to File a Tax Return for My New Business? No Activity or Income? Due Dates? - YouTube
Channel: Navi Maraj, CPA
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In this video I'm going to be answering聽
your questions such as do I need to file聽聽
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a tax return for a business with no activity聽
meaning it didn't have any income or expenses聽聽
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what type of tax return do i need to聽
file if I'm a sole proprietor or maybe聽聽
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I'm being taxed as a single member llc聽
a multi-member llc and s-corp a c-corp聽聽
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when is my tax return due based on those聽
different entities i just mentioned聽聽
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and also what are the penalties if i accidentally聽
file late so if this is your first time watching聽聽
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my name is Navi Maraj I'm a CPA who helps in聽
particular real estate professionals that's real聽聽
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estate agents and brokers around the country聽
save thousands of dollars in taxes but this聽聽
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video is for all business owners regardless of聽
what type of business activity you perform so um聽聽
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let me just say this real quick do go ahead聽
and subscribe at this point in time because聽聽
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all of my videos are going to be like this one聽
where I'm either educating you or teaching you聽聽
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a tax strategy to save you thousands of dollars聽
in taxes so with that said uh let's go ahead and聽聽
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transition to the whiteboard behind me so let me聽
let me kind of start off explaining what I've got聽聽
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listed here so across the top of the whiteboard聽
I've got your entity types and sorry entity type聽聽
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tax classification that means how this entity聽
type is going to be taxed given its tax this way聽聽
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what tax return do i need to file and uh do i聽
even need to file a return based on if i had you聽聽
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know what level of activity i had and then when is聽
the due date for this particular tax return right聽聽
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and then in the rows here I've got the different聽
uh types of entities that we're going to talk聽聽
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about during the video okay so let's start from聽
the top let's say you formed a single member llc聽聽
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so you went to your state you filed an llc聽
and there's just one member which is yourself聽聽
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this is also going to apply if you're just聽
you know let's pretend your name is john doe聽聽
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and you're just doing business as john doe or聽
you've filed what's called like a fictitious聽聽
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name agreement or a trade name or a it could聽
be called doing business as if you filed any聽聽
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of those then you're going to be taxed as a sole聽
proprietorship that is your tax classification聽聽
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all right so what type of tax return does聽
someone who's taxed as a sole proprietorship file聽聽
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they will file a schedule c which is a separate聽
schedule that's part of your individual tax return聽聽
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that's what itr stands for in this example all聽
right so single member llc is taxed as a sole聽聽
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proprietorship and where does those taxes get聽
filed it gets filed on your schedule c which is聽聽
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part of your individual tax return okay now聽
do i even need to file a return let's say聽聽
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i just started this business there wasn't much聽
activity well the sort of general rule is if聽聽
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you have profit and I'm defining profit here as聽
you've got your revenue you've got some expenses聽聽
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if you've got profit greater than or equal to 400聽
the answer is yes you need to file a tax return聽聽
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now if you didn't have any activity聽
let's say you formed a single member llc聽聽
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you had no income no expenses then you don't have聽
to file a tax return also i want to be clear here聽聽
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if you've got expenses and you've got you know聽
you don't have a profit let's say you have 800 in聽聽
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losses you probably want to file a tax return to聽
take advantage of those losses to see if they can聽聽
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offset any other income that you have all right聽
now when is your individual tax return due it's聽聽
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due on April 15th just as you probably suspected聽
it's due all right so let's move on to the next聽聽
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category so next we have the multi-member llc so聽
this is if you've gone to your state you formed an聽聽
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llc and you're on it and there's someone else on聽
it right and for this i'm going to get to this in聽聽
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a second but i'm going to say for now um it could聽
be your spouse or it could be someone else right聽聽
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this type of entity is uh taxed as a partnership聽
okay so you're gonna file a partnership tax聽聽
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return i know that might be news to some of you聽
watching this forum if you have a multi-member llc聽聽
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then it'll be taxed as a partnership what does聽
that mean that means you have to file a separate聽聽
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tax return it's called it's form 1065. it's called聽
an informational tax return and that tax return聽聽
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is due on march 15th before聽
i get to the due date though聽聽
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do i need to file this partnership tax return聽
well the only time you don't file a partnership聽聽
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tax return is if you had zero income and you had聽
zero expenses all right so if you had no business聽聽
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activity no income no expenses then you don't have聽
to file this return if you have you know 100 bucks聽聽
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of revenue 100 bucks inspect expenses you need聽
to file this partnership form 1065 tax return聽聽
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and it's due march 15th okay one month prior聽
to when your individual tax return is due聽聽
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all right what do i have here in this sort聽
of purple color this says multi-member llc聽聽
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but specifically it's a husband and wife and聽
it's in a community property state all right so聽聽
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if it's a husband and a wife team and it's聽
not in a community property state then you聽聽
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follow this guideline here in the green but聽
if it's a multi-member llc and i'm the partner聽聽
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sorry yeah i'm a partner and so is my spouse and聽
i live in a community property state then the way聽聽
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this is actually taxed is as a sole proprietorship聽
okay that might be news to you even if you're a聽聽
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tax preparer watching this or if you're a new聽
business owner that's probably definitely news聽聽
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to you it's taxed as a sole proprietorship and聽
so the tax return that you complete is schedule c聽聽
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same as it was here but this mfjtr that's just聽
saying it's on your married filing jointly tax聽聽
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return right now do i need to file a tax return聽
the the rules is just like it was up here聽聽
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yes if you have a profit greater than or equal to聽
400 you want to file a uh schedule c tax return聽聽
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if not um if it's less than 400 then technically聽
you could get away with it but i'm just saying聽聽
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it's probably a good idea to file if you've got聽
you know income and expenses um and you've got聽聽
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a loss for sure you probably want to file that聽
return that's due again april 15th just like it聽聽
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was up here okay what's next what's next is聽
a c corporation now this is not likely that聽聽
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you form this entity this is usually for larger聽
corporations but if you filed a corporation in聽聽
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your state then your tax classification is also聽
called a c corp all right and the tax return due聽聽
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for a c corporation is the 1120 all right so it's聽
a separate tax return than that of your individual聽聽
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tax return okay and do you need to file a return聽
the answer here is yes even if you had zero income聽聽
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zero expenses the irs is still expecting a tax聽
return for this it might be filled with zeros聽聽
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but you still need to file it and when is it聽
due it's actually due on April 15th okay so that聽聽
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is the c corporation return all right last section聽
here now what i'm trying to um sort of depict here聽聽
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is that an s corporation is not an entity type聽
it's not a legal entity type right so in order聽聽
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to be taxed as an s-corporation you would either聽
either have to have to have a single member llc聽聽
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or a multi-member lrc or a c corporation and you聽
can fill out paperwork with the irs to have this聽聽
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type of entity taxed as an s corporation so if you聽
filled out that paperwork or your accountant did聽聽
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or you went through legalzoom or something like聽
that and you made the s corp election then then聽聽
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you have to file the 1120s tax return okay that's聽
the type of tax return that you have to complete聽聽
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do you need to file a return if you didn't聽
have any business activity yes okay if you're聽聽
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a corporation specifically s corporation or c聽
corporation even if it's all zeros no income聽聽
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no expenses you need to file that tax return okay聽
when is the s corporation tax return due it's due聽聽
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march 15th so i want you to realize here what's聽
going on with the due dates okay let's talk about聽聽
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late fees as it relates to these due dates if聽
you're learning for the first time here that your聽聽
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partnership tax return or your s corporation tax聽
return is due march 15th and not April 15th and聽聽
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march 15th has already passed well unfortunately聽
the late fee from the irs is going to be 200聽聽
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per shareholder or 200 per partner per month all聽
right so using the example of a multi-member llc聽聽
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uh if you even missed this by one month it's聽
two partners one meant one month went by so聽聽
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you're at a 400 late fee so please uh be careful聽
and be cognizant of those due dates all right聽聽
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uh real quick if you were you know listening聽
to this video for the first time and this聽聽
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was a little bit too advanced for you and聽
you're wondering like you know what is an llc聽聽
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when would i be one what's a c corp you know聽
when should i be an s corp and by the way an聽聽
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s corp can probably save you thousands of dollars聽
in taxes um you know don't worry I've got a video聽聽
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explaining the legal and tax differences which聽
is probably going to be popping up here shortly聽聽
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if you're watching on YouTube but if you're not聽
watching on YouTube then you can just visit my聽聽
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website it's navimarajcpa.com and my complete聽
video library is there for free for you to binge聽聽
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on and learn and also implement tax strategies聽
that you may not be aware of that could save聽聽
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you thousands of dollars in taxes so I hope this聽
video was helpful and you receive value out of it聽聽
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if so please again consider subscribing and聽
sharing this video with a fellow entrepreneur聽聽
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so that they can learn and they can save聽
thousands of dollars in taxes as well聽聽
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thanks so much for watching and聽
I'll see you in the next video
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