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If my company won't be making money or revenue for quite some time, what does that mean for me in terms of the IRS? Will we get penalized for NOT having revenue?



It's worth pointing out that California imposes a MINIMUM tax of $800/yr on LLCs (even if you have zero revenue). This disincentives you from going and forming an LLC "just because".


This would for a corporation in Delaware.


The sub-title is: "How to bootstrap a Delaware C-corp (or S-corp) with employee(s) in California"

If you have a 'nexus' in California, you are subject to that tax. Ask me how I came to find that out :)


If a C or S corp, you still need to file a Form 1120 [1] U.S. Corporation Income Tax Return:

"Who Must File Unless exempt under section 501, all domestic corporations (including corporations in bankruptcy) must file an income tax return whether or not they have taxable income. Domestic corporations must file Form 1120, unless they are required, or elect to file a special return. See Special Returns for Certain Organizations, below"

LLCs have a similar requirement.

[1] https://www.irs.gov/businesses/small-businesses-self-employe...


In the United States you will not be penalized for having no revenue.


You are effectively penalized in California for zero revenue, see all the comments in this thread about the $800/yr minimum tax.


To clarify, I was assuming State and Federal fees not to be considered being penalized and simply cost of doing business.


Oh yes you will. In Britain a zero-revenue company cost me £14 a year, in the US it's about $200. California is worse still.




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