taxes, sole-proprietorshipIm starting a small business based in the US. Basically it a 5k race that I want to do in May(ish). If I register my business now as a DBA and pay for the artwork this year, would that add much to taxes? Is there any kind of tax fee for having the business but not doing anything with it or spending a bit of money but having no revenue yet? Hopefully that makes sense I can add details if I’m missing anything that would be required to answer the question.
Assuming this is in the US, the DBA is purely a formality, unlike incorporation or formation of a partnership, so it won’t have any tax consequences. (Essentially, it allows you to cash checks made out to the business’ name, as opposed to your own.)
In terms of cash in/out of the business, there are no differences from a tax perspective. Money you spend now can be used to offset future revenue, but that’s more of a question for a CPA.
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