Per the IRS, every business must file an annual tax return except partnerships, which must file an information return instead. If you made less than $400, you don't need to pay the self-employment tax, but that's the only avoidable tax.nnThe IRS probably won't audit your business until you start making a profit, but it's still a good idea to file a return. You can get tax deductions if your business is operating at a loss. In addition, you will avoid any potential legal issues further down the line.