General Tax Question!

[Moe_]

Hi all,

I incorporated a business in 2010, though I have not begun operating. I have not had one dollar of positive cash flow because for all intents and purposes, I am still in my startup phase and the only money that has changed hands has been to incorporate my business and pay a couple artists for some logo work.

Do I have any responsibility of filing taxes for 2010? Are there any tax credits that I could receive for only having negative cash flow in 2010 that could be applied to a 2011 filing?

Thanks!

[experimentjon]

I'm not a tax expert, and know nothing about Maryland tax laws. But if you have incorporated, have you filed for a Tax ID (FEIN) with your state department of taxation? If you have, then you should probably file even if you do not need to pay. And yes, there loss carry forwards that companies can apply forward to future years. That is another good reason to file.

[Milkerz]

As far as I am aware, tax returns need to be filed even without any cash coming in. My mom liquidised her business over 2 years ago and is still doing tax returns for it even though no money is coming in or out of the business, I think it's a 3 or 5 year thing I'm not sure.