exactly.....you know how easy it is to get ein??? bout ten minutes depending on how slow you internet connection is. look good if trying to get a loan or while in the near future.....you already got what you need operate at a negative for a few years. Nothing illegal about it, bix do it all the time
Any idea if it is ok to claim negative next couple years since I showed a profit the last 2? The last 2 were the first 2 of the farm.
You probably should check with a tax prep pro just to make sure. But if you spend any money to expand or just have a bad year with no profit, just a bad year. They just won't let you have more than 5 consecutive years with a lose. If you can't show a profit or at least break even then your venture will be classified as a 'Hobby' and the lose no longer tax deductable. And I never paid a fucking penny of taxes until April. Letting the Gov hold my money didn't make any sense to me. It's like loaning them money for months at a time and not making a damn cent of interest. They can hold yours for nothing, but you don't pay them on time and it's 9% interest with penalties tacked on. Be Cool, CG
You're talking about an Employer Id Number? Makes your business look serious. Got to have one to be legit. My mother, who did all my finances for the business wrote it so many times she had it memorized. She even signed my name 10 times as much as I did. I took a customer's check to the bank to cash for some pocket money one time and signed it in front of a new teller and said "cash please". She took it to the bank manager and told him something was up because it did not match signatures on the checks deposited earlier. He came out of his office and started laughing and told her it was ok. One of the other tellers chuckled and told her that my mom signs my name to everything. I said "Hey, if your can't trust your mother with your money, who can you trust?" Be Cool, CG
Dude MOST businesses show a loss the first 10 years of existence. Don't pay tax. Salary is an expense. Talk to a CPA and lawyer.
