I took out a business license in October 2008. I didn’t make any money with the business in 2008. I started an internet marketing business and I try to sell things through Clickbank and Google Adsense. I just received my first check through Clickbank, but that was in 2009. I made a little money in December 2008 through Clickbank and Google Adsense, but I haven’t actually received a check from Google Adsense, and I just received a check from Clickbank this week. Do I need to file taxes for my small business for 2008?
Just to clarify, I didn’t make a dime last year! I just received my first check a few days ago.
I made like $44.00 in December, but with Clickbank, you don’t receive a check until you sell five items. With Adsense, you don’t receive a check until you make $100.00.
For that reason, I didn’t actually receive any money until February 2009.
I had no real expenses last year, other than a couple e-books I purchased to learn about internet marketing. Those books probably cost me $40.00
yes call the irs if you like but i know its yes
Posted in small business internet marketing
I would call the IRS to make sure-it is easy and fairly quick to get answers from them. For teenagers or adults who take care of children as nannies, they are only required to file their income if it is over $400. What do you mean by "a little money"? If it is more than 400, I can almost guarantee you are required to file it.
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If you were a sole proprietor and you have no income and no expenses, then you wait until your 2009 return to add the schedule C.
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It depends on your entity status-in other words, are you organ-
ized as a corporation? If so, a corporate return (either 1120 for
a C corporation or 1120S for an S corporation) must be filed
every year your business is in existence. However, if you are
just a sole proprietor (the default if you have not incorporated
yourself) and you did not elect to adopt the accrual method of
accounting (which would be unusual for a small business just
starting out), then you have no 2008 income and would only
file a Schedule C with your personal 1040 to report any ex-
penses you incurred in 2008.
Robyn M.
Enrolled Agent
Master Tax Advisor
**This advice was prepared based on our understanding
of the tax law in effect at the time it was written as it applies
to the facts that you provided
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yes call the irs if you like but i know its yes
References :
IF you are using cash accounting then you claim your income when it is received. If you are using accrual accounting you claim your income when it is earned not paid. Most small businesses would use cash accounting. In this case you would not claim any income if you did not receive a check in 2008.
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