My foreign-owned LLC had no sales yet. What business activity code goes on the pro forma 1120?
This was a pre-launch year for my SaaS LLC, so the company had expenses, bank movement, and owner funding, but zero customer revenue. When I looked at the Form 1120 instructions, the principal business activity code discussion sounded tied to receipts, which made sense for an operating company but not for my situation. I do not want to pick something random just to fill the box.
I am trying to understand how careful founders handle this when the real business exists but the revenue has not started yet. Is the answer to choose the code that matches the intended principal activity, or is there another way the IRS expects zero-revenue years to be handled on the corporate cover sheet?
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