How long can you post $0 to the IRS and state taxes? My business

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>>1929949
I've incorporated a business back in 2012 with a friend [inb4 don't do business with friends], and we gave it a dumb name.
It was going to be an online business, and we were a couple of months away from launching it.
Long story short, fucker gets arrested for robbing his grandmother's neighbor's house, as well as a bunch of unpaid tickets from years prior.
I sat on the company until 2016. I filed $0 earning quarterly reports four times a year since 2012, until finally I dissolved the business. I held on to it for personal reasons, because it was the very first business I incorporated.

tldr; you can post $0 as long as you want! Double check with your state (or country, if outside US) laws!

Why would they "shut down" your business? You pay taxes if you make money. You don't pay taxes on money you don't make. You have to keep paying whatever fees are associated with running a business in your state, but that's another department.

>>1930110

When you say quarterly reports, you're talking state taxes not IRS right?


>>1930114

I could have sworn I read somewhere that if you post $0 for too many years in a row after registering your business they would eventually shut you down. I'm just being safe and cautious to be honest. Facts before acts!

Found this if anyone else is interested in the topic at hand

https://ttlc.intuit.com/questions/2338853-how-many-years-can-i-claim-an-operating-loss-on-my-business

>>1930120
Yes, state taxes. The IRS checks those, so it's all linked.

You're a bit confused OP. Let me set you straight.

You can file $0 tax returns for as long as you want, and neither the IRS nor any state taxing authority will care. There's no rule that punishes a company for filing $0 returns. As long as you keep up your state annual filings, and pay your annual fees, you can continue indefinitely.

There is, however, a limitation on the number of times you can file NEGATIVE tax returns and claim a loss IF you're also trying to use that loss to offset your PERSONAL income.

Normally, if you operate a self-employment side business and lose money, you can offset that loss against other personal income. But the IRS will not allow you to keep claiming self-employment losses year after year. If you keep losing money for too many years, the IRS will reclassify your business as a "hobby." Hobby losses are NOT deductible against personal income. So having your business reclassified into a hobby is a bad thing because it takes away a deduction that would have otherwise lowered your personal taxes.

There is no hard and fast rule for when a business will be reclassified into a hobby. The IRS will look at many factors to determine if the business is legitimate or should be reclassified. However, if you report losses in 3 years out of 5, there is a presumption that the business should be reclassified.

tl;dr Reporting $0 is no problem. Reported losses that you claim on your personal taxes will become a problem after you do it 3 times.

Jesus Christ is she pretty