Hello! Coming up on filing taxes for the first time on my LLC. Couple questions:
For context I started a clothing brand:
All in all this year, when looking at my expenses, which include the cost of the machines that I purchased to create my product, as well as the supplies I needed, I spent about $20,000.
As anticipated, when I first drew out my business plan, my expenses will out way my revenue, but I’m on pace to start seeing profit next year.
Even though my business technically lost money this year, can I still claim credits on my taxes for all of my expenses?
Is there anything in particular to the first year of taxes with an LLC that I should be keeping in mind, any tips/tricks that I should consider?
Any advice is appreciated, thanks!
You don’t claim credits, these are business expense deductions. That’s different than a credit.
Your business is open and making sales, right?
Are some of those expenses costs of goods to sell? Items you still hold as inventory?
Yes, still open and making sales.
The expenses I included are just the cost of the machines, equipment, and raw material needed to make the final product