I just started a business (startup) and wanted to do the right thing by having a bank account for the company and putting all the business expenses on the business account. Now, I am in NY and I know that you dont' have to pay tax if you are suffering a loss or have no revenue except for the $300 annual franchise fee. Now, when i deposit say $1300 every month as my own money in the business bank account so that the expenses will go through, do i have to pay tax on my $1300?
Secondly, do i have to do a quarterly tax filing even if the $1300 is my own money? Up until now i never had this kind of a situation. Since it's a startup we have no revenue at this point so any money deposited is my own money going in. I never had this kind of money of my own to run a business so i am confused.
I believe these payments would just be treated as capital contributions. It has the effect of increasing the basis you have in your ownership of the company. On the balance sheet, it counts as an asset, with offsetting shareholder equity. There is no tax effect to this sort of contribution.
See http://www.irs.gov/publications/p542/ar02.html and search for "paid-in capital".
Generally, the answer would be no. The money you deposit is a shareholder loan, and needs to be paid back, eventually, to the owner. It is neither an expense nor revenue.
Speak to a local accountant to get your books set up correctly.
No, the money you put in the business as your contribution to it is not taxable. What will be taxable is all your revenues less any expenses you may have. Any money you contribute to the business is NOT revenue.
Also, you mentioned that you have expenses but no revenue? Keep in mind that IRS may disallow your business deductions if you have continuous losses (expenses more than revenues) for a number of years because IRS will treat that activity as a hobby.
As others mentioned, talk to an accountant.