Unusual question young David is self-employed, only problem he doesn’t make any income. He talking about setting up a S Corp. Question is do you need to register somewhere as being self-employed despite not making a dime. That is the young folks that has the seniors puzzled? He lives in his parent’s garage

When I started a business out of my home, I had to register with the village. He should check into that plus the township, the county, and the state. Does he have a business plan?

S-corps are out of my range of knowledge. Others here will advise you about that.

You say he doesn't make a dime - do you mean he has absolutely no revenue in whatever the business is that he wants to set up? Or do you mean that he has revenue but no profits? Why does he want to set up an S corporation if he has no revenue? And given that he makes no money and is living in his parents' garage, are you asking whether he can be considered a dependent of his parents for tax purposes?

But to answer your question: he has to file letters of incorporation with his Secretary of State, obtain an Employee Identification Number (EIN) from the IRS using form SS-4, and file from 2553 with the IRS within 75 days of incorpration. More info here: https://www.incorporate.com/s_corporation.html

He is just a young fellow, just out of college Computer Specialist. He hasn't made any revenue so far. Thanks for the advice

If the INTENT is to make a profit, he needs to register the S corporation with the state of residence and, eventually, file Form 1120S (S Corporation Tax return) with the IRS and the state-equivalent form with the state.

Thank you. It remains to be seen, at this point and time.

Noted