I keep poring money into my business but a year after business registration still no revenue from it. Can I have my expenses reimbursed?

[Eholic]

Hello everyone,

I don't have any income from my business as of yet.

However I have invested and keep investing to improve my business to begin seeing revenue from it.

Will I have any of my expenses reimbursed during the tax period at the end of the fiscal year?

as a side note: I am UK based but have my LLC is was formed in Miami, Florida on my behalf by a formation company with a registered agent.

I am looking forward to hearing from you,
Thank you

 

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[Tinker Explorer]

I don't know UK Tax law, but if you are a sole member LLC and didn't elect SCorp status, you are filing as an individual with a schedule C in the US, and you can take up to $5000 of startup costs as expenses, and $5000 organizational costs. If you spend more, you can still amortize costs over time up to $50,000. This is all before you open your doors. Here's a link describing the types of expenses you can deduct. Here’s how businesses can deduct startup costs from their federal taxes | Internal Revenue Service

And these numbers sometimes change from year to year - just saw another IRS pub that had different amounts, so I would double check with your tax advisor when you file.

You must have an intent to make a profit, and prove that you are doing so by improving your business (which sounds like exactly what you are doing). It's case by case, but a general rule of thumb is to make profit 3 of 5 years. Other things they may look at is the dreaded business plan, or steps you're taking to improving your strategy for profit.

 

[Gypsy Soul]

Hello everyone,

I don't have any income from my business as of yet.

What is your business selling service / product or both?

However I have invested and keep investing to improve my business to begin seeing revenue from it.

What are you investing (money, time, marketing, research, processes, etc...) into your business?

Will I have any of my expenses reimbursed during the tax period at the end of the fiscal year?

You need an accountant one who specializes in your industry would be preferred to help with this.

as a side note: I am UK based but have my LLC is was formed in Miami, Florida on my behalf by a formation company with a registered agent.

What was the reasoning for registering in Miami? Does your business conduct business only in the US?

I am looking forward to hearing from you,
Thank you

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