The Business Corner
Zero Activity Tax Return

Should I File a Tax Return for my Business if I did not have any Activity?

We are here to help people reach their dreams when they start a business. But when you first get on the road as an entrepreneur, there is a lot to learn. As well as the marketplace you operate in you may need support in getting your business off the ground. This is our core business mission statement – we are here to help.

One question that comes up time and time again is the one at the head of this article –

Should I File a Tax Return for my Business if I did not have any Activity?

People want to know what it means to them and what the potential consequences are. The very short answer to this question is “yes,” but as a small business owner we already know that you want more information than that. You may have had a low income return as an individual and already know that you are excluded from filing Income Tax. But business is different. You face a different set of rules to the individual.

As a business, you must file a return, even if it is a very low level of income or no income at all. You have to get all of your paperwork in order as a business. Even without activity you can be liable to the state and federal government for the business that you own. The simple way is to file a tax return. The consequences of just ignoring this necessity can become a much bigger issue.

Why is it important to file a tax return?

There will be penalties involved if you fail to file a return on time. If you don’t file you leave yourself and your business open to these late penalties. It is far easier to file a simple return than to ignore the tax system and wind up with a cost that you did not expect. The last thing you want for a business that has little activity is to be fined for failing to file your return on time.

In addition, there are very few instances when a business actually has a true zero for their business. The tax year may have passed without any income but there are often costs associated with owning a business whether it is trading or not. You may have professional costs, items such as website hosting or other small costs that can be filed as a loss for that financial year. The benefit of this is that you can offset this loss against income in future years to minimize the tax burden you face overall. You want to get the most from the tax system so that you pay as little tax as legally possible.

The government has calculations for tax if you do not file a claim. They use averaging models to apply tax rates to businesses that do not file any claim at all. They look at the income, expenditure and tax of other businesses in your industry and then use these to estimate the tax that you are liable to pay. This can be quite an onerous commitment for a small business if they actually have no activity and little or no income. To avoid ending up having to pay a penalty on activity that the government assumes and you don’t have, a simple filing of your tax return can save you a lot of hassle and potentially a lot of money.

But doesn’t this cost me?

It can. A traditional accountant can charge between $800 and $1,200 for a tax return for your business, even if there is very little activity. You can see why the temptation is there to file no return and save that cash for something else. At we believe that the small business owner needs a break. We don’t treat you in the same way as traditional accountants. We stand for something better. We have a streamlined system that allows us to keep costs low for you.

For a zero-activity business tax return we can get this done for as little as $225, including filing all state and federal forms so you don’t end up with fines, penalties or any of the other issues associated with not filing a return. But we don’t just help the small business that has zero activity. We carry out tax returns for businesses with activity and only charge the low price of $450 for this. Now there may be occasions where you have a complex return and we need to charge additional fees, but with process at around half the amount the accountants charge, we are able to help you save money with your tax return.

Not only do we provide our service at a low cost but all of our tax returns are carried out by licensed CPA’ so you get the benefit of our expertise too! We set up to help people who have just started out in business.

If you have any questions about the great low cost service we offer then get in touch today. You can email us at or call us at 888-700-8213. We are here to help you get the most from your business.

Business Tax Resources