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    andyshrestha's Avatar
    andyshrestha Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 6, 2016, 03:39 PM
    About No income business.
    Suppose I register my photography business as LLC. I purchased all the camera gears and other stuffs needed but couldn't book 1 client.

    Will I have to pay anything from my pocket during tax filing?

    Thanking you in advance.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Feb 7, 2016, 01:55 PM
    The camera equipment and business setup costs are a cost of doing business and are deductible against business expenses. However, because you setup the business as an LLC, I don't believe you can deduct those costs against personal income.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Feb 8, 2016, 11:13 PM
    Scott,

    That may not be true.

    An LLC is a BUSINESS entity, not a tax entity. If it was registered as a "disregarded entity", then the income and expenses are reported on Schedule C as personal income or loss.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #4

    Feb 9, 2016, 06:25 AM
    Ahh for correcting me on that.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #5

    Feb 9, 2016, 08:41 AM
    Scott,

    No problem!

    Andy,


    You CAN claim the costs of the equipment on Schedule C, provided you have registered the LLC as a "disregarded entity". The loss can reduce your taxes on other income, such as salaries for or your spouse if you are filing a joint return.
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