I'm attempting to put some websites together to hopefully make some money that I started last year. I have had a LLC registered for many years that I didn't do anything with. Last year I finally started my plan and mostly all my start-up money went out for hosting, domain purchases (about 1k), website development, bought a printer, upgraded failing computer, etc. The only income that was made was about $20 from google adsense. I also have two business accounts I opened last year that I deposited about $50 in each and they require me to use the card every month or a fee is assessed (which I use to buy dollar items only like a soda). I had to make a couple deposits in those bank accounts again, when the money was getting low, but that was out of my own pocket and not by money made from the websites. Note also that my expenses were out of my personal bank account or
1) Do I have to file taxes for 2009? Adsense didn't payout since I didn't accrue $100 (and still hasn't today) and/or because my bank could report me since that was just opened last year?
2) If I don't for either of the reason above, should I still file? Would my loss help benefit any gain I might have in 2010 to help offset? I know stocks do that for a year or two, but I have no clue about small businesses. My loss or start-up costs are in the range of $3k. My "unofficial" earnings is $20 from adsense, not paid.
3) Any problems because my start up costs came out of my personal account?
4) Should I get some type of tax form from Google Adsense and the Bank? I received neither. I got from my bank for my personal savings account, but not for my LLC business accounts.
5) Lastly, I asked my dad these questions and he mentioned that his wife was audited right after she claimed a loss because of selling make-up for the first time that year. Said they followed her financial extensively after that. He didn't think it was worth it. Is it true, that if I filed I would draw a red flag and they may audit my business and me personally and continue to dig into my personal financial affairs down the road?
Thanks so much for any help!