Hello. I know this might sound silly to the hard-core professionals out here, but in general- I was wondering if there are any rules or laws about having a side-business and not posting a profit after "x" amount of years? I guess more specifially, does the IRS frown on a business if they keep posting a loss and if the revenue is never greater than the expenses? They always say it takes a "few years" for a small business to get going. In the first year or two or three you have the start-up costs, operating expenses and initial investment into materials and supplies. The revenue a business pulls in at the beginning, just helps a person get out of the "red" per se. Now, all businesses are also facing a recession these days, especially if you are in a luxury type business, so that is another key factor playing into the equation. A business owner can't force customers to buy and twist their arms. Many small business owners are working other jobs and keeping the side-business going because they enjoy it very much and that is their dream to bridge into their side-business 100% some day. So, does anyone know if a business can keep going in its 4th year and possibly 5th year - - -or it is likely the IRS will have something to say about it and is anyone ever forced to stop and close their business because the revenue is never greater than the operating expenses? Thank you.
