USA Sole Trader

[skullkeeper]

Hi

I am Employed Full time and collect grow Venus Fly Traps.

Some suppliers will only trade with Company's so i was thinking of starting my Own Company

its MAIN PURPOSE is to enable me to purchase goods form "Trade Only" suppliers,

i do not intend to SELL any goods, but would be able to have Company ID I.E. business letterhead, business card, certificate of incorporation, company invoice/order form, VAT certificate

Would i still have to send Tax Returns in each year, my ONLY income would be from my Primary Job and not from my Fly traps

Many Thanks
Kevin

 

[ColinCPA]

If you don't intend to make any profit (or even sell), then you don't have a business. This would be classified as either a hobby or an investment. You won't be able to deduct any expenditures related to this activity, unless you do sell and generate income (limited on Sch A).

And no, you would not file any other tax return for your "business". However, if you are registering an EIN for this activity, I would report as a blank Schedule C on your return in order to avoid notices from the IRS.