Yes, you must file and 1120… even if you had no activity for the year!
Filling out Form 1120 is not as easy as just inputting a few numbers, there’s actually quite a bit of informational data that needs to be entered as well. You have to have to right knowledge to know where to put those numbers and the right data. For example, if your startup had $0 revenue and expenses but had an international subsidiary - $0 revenue and expenses - and you don’t file a 5471 with your 1120… You could get hit with a $10,000 penalty!!
Filling out tax returns is a bit like a driving a rocket ship; you have to know which levers to pull and buttons to push at the right time. And while tax software exists, you need to work with a pro to make it all work. Just like you cant purely rely on WebMD to self-diagnose. With your financial health on the line, that’s why CPA’s are licensed and regulated. (Fun fact: the CPA exam is widely considered to be the most difficult professional exam.
If you’re looking for Software + a CPA for your startup tax return, check out www.KruzeTax.com. We’re Startup Tax CPA’s that use AI and software to make tax returns faster and cheaper. Professional CPA’s + Software = Confidence & Speed at a Bargain Price.
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