Pre-Revenue Tax Obligations: MooseQuest LLC dba Raxx (TY2026)

Status: research-only. This document does NOT constitute legal or tax advice. Before filing or acting, consult a CPA (federal + Pennsylvania individual and small-business) licensed in Pennsylvania. Last updated: 2026-10-02. Sources as of that date; verify freshness.

TL;DR

A default-disregarded single-member LLC files no separate federal return; its activity goes on the owner's Form 1040 (Schedule C), and Pennsylvania mirrors that on the PA-40 (Schedule C). The central open issue is whether the business has "begun" (IRC 195 start-up costs vs. current deductions, and possibly IRC 174A for software development), which depends on launch facts the CPA must establish. One item may already be late: the PA Department of State annual report ($7, window Jan 1 to Sep 30) was due 2026-09-30.

(A) WHAT YOU ACTUALLY HAVE TO DO (ordered by urgency)

1. PA annual report: POSSIBLY PAST DUE (due 2026-09-30, two days ago). Filing window is Jan 1 to Sep 30; fee $7; file online through the PA Business Hub (file.dos.pa.gov). Per the Department of State, administrative dissolution for non-filing does not begin until reports due in 2027 (six months after that due date), so the 2026 report appears to carry a transition grace. File now and confirm no late fee on the filing screen. Also confirm whether a 2025 report was due/filed (depends on formation date).
2. Pull the facts the CPA needs this month (launch/"began business" facts, formation date, 2025 filing history). No deadline, but every other answer depends on them. See (C).
3. Book the CPA before year-end (target 2026-11-30). Decisions that affect 2026 (start-up vs. operating treatment, 174A posture, estimated payments given other income, Form 5213) are cheaper to settle before 12/31.
4. Estimated tax: Q4 installment due 2027-01-15 (Form 1040-ES), only if the CPA says other income creates a balance due. The LLC itself creates no estimate obligation at $0 revenue; W-2 withholding may already cover it.
5. TY2026 Form 1040 with Schedule C (and Form 4562 if electing/amortizing): due 2027-04-15; PA-40 with Schedule C: due 2027-04-15. Extension to 2027-10-15 extends filing, not payment.
6. 1099-NEC. If any single payee (e.g., an attorney) received $600+ in 2025, a 2025 Form 1099-NEC was due 2026-01-31 (past); ask the CPA about late filing. For 2026 payments the threshold is $2,000; due 2027-02-01 (Jan 31 is a Sunday). A $750 attorney payment alone does not trigger one for 2026.
7. Housekeeping (no deadline): confirm EIN; keep business funds/records separate; start a contemporaneous profit-motive file (Q3). No FinCEN BOI report is required for a U.S. LLC (Q9).

(B) Research by question

Q1. Federal filing for a disregarded SMLLC with $0 receipts

• A single-member LLC with no election is disregarded; income and expenses go on the owner's return (Schedule C for a trade or business). No separate entity-level income tax return. Employment-tax treatment: none unless there are employees. Source: IRS, Single member limited liability companies: https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-companies
• Schedule C is the vehicle for claiming any business deduction/loss; the instructions contain no zero-receipts exemption. Source: https://www.irs.gov/instructions/i1040sc
• Filing vs. not filing: filing Schedule C claims the loss (if the CPA concludes any is deductible, see Q2) and creates the record for the profit-motive history (Q3). Not filing claims nothing. A large Schedule C loss with no revenue for an unlaunched business draws scrutiny (unsourced characterization; confirm with CPA).

Q2. Start-up costs vs. operating expenses (the biggest issue)

• IRC 195: elect to deduct up to $5,000 of start-up costs in the year the active business begins, reduced dollar-for-dollar once total start-up costs exceed $50,000; remainder amortized ratably over 180 months starting the month the active business begins. Start-up costs are amounts paid or incurred in connection with creating an active trade or business or investigating its creation or acquisition. Sources: IRS Pub. 535, Business Start-Up and Organizational Costs: https://taxmap.irs.gov/taxmap/pubs/p535-034.htm ; Pub. 535 PDF: https://www.irs.gov/pub/irs-prior/p535--2022.pdf ; 26 CFR 1.195-1 (regulation text; fetch from eCFR).
• "Active trade or business begins": generally when the business is a functioning going concern doing the activities it was organized to do (e.g., services available to customers). Pre-opening activity (product build, research, legal/formation work) is generally pre-operational. Case-law standards (e.g., Richmond Television Corp. v. United States, 345 F.2d 901 (4th Cir. 1965)) are unsourced to a .gov page; confirm with CPA.
• Why "hasn't started" matters: if the business has not begun, ordinary-and-necessary deductions under IRC 162 are generally unavailable for the pre-opening period. Those costs are instead start-up costs ($5,000 election plus 180-month amortization starting only at launch) or capitalized. If launch has not occurred by 12/31/2026, the 2026 return may allow little or no deduction of these costs. The facts as stated (personal-use-only posture, Cloudflare Access gate, no customers, no App Store release, nothing charged) point toward "not yet begun"; the CPA decides.
• Facts the CPA will ask for: formation date; date anyone outside you could first use the product (including free tier or beta); first revenue-generating activity; marketing launch date; date the Cloudflare Access gate comes off; App Store release date; planned launch date and evidence of it.
• Organizational costs (LLC filing fee, formation attorney fees, initial registered-agent set-up): IRC 248 applies to corporations and IRC 709 to partnerships; a disregarded SMLLC is neither, so categorization (start-up under 195 vs. capitalized) is a CPA question. Ongoing registered-agent and annual-report fees are generally operating costs once the business has begun (confirm). Trademark/IP legal costs (including the $750 IP-assignment fee) are typically capitalized intangibles (unsourced; confirm).
• PA computes net profit under its own rules, not automatic federal conformity; ask the CPA whether PA follows the same start-up treatment. Source: https://www.pa.gov/agencies/revenue/forms-and-publications/pa-personal-income-tax-guide/net-income-loss-from-the-operation-of-a-business,-profession-or-farm

Q3. Hobby-loss / profit motive (IRC 183)

• If an activity is not engaged in for profit, deductions are limited and the expenses are effectively nondeductible while income is taxable (miscellaneous itemized deductions are suspended; confirm current status with CPA). Presumption of profit motive: profit in 3 of 5 consecutive years (2 of 7 for horse activities). Form 5213 can postpone the determination (generally within 3 years after the due date of the first return for the activity). Sources: IRS, Hobby or business: https://www.irs.gov/newsroom/earning-income-from-a-hobby ; Form 5213: https://www.irs.gov/forms-pubs/about-form-5213 ; Treas. Reg. 1.183-2(b).
• Nine factors (Reg. 1.183-2(b)): manner carried on (businesslike books), expertise, time and effort, expectation assets appreciate, success in similar activities, history of income/losses, amount of occasional profits, financial status of taxpayer, elements of personal pleasure.
• Keep now: written business plan and projections; pricing/go-to-market plan; dated roadmap and launch milestones; separate business account and monthly ledger; owner time logs; records of CPA/attorney consultations; changes made to improve profitability; customer-discovery evidence; investor/partner communications. The "personal-use-only first" posture should be documented as a deliberate phased launch with dated milestones, since the CPA will weigh it against the personal-pleasure/personal-use factor.

Q4. If Schedule C shows a loss

• A Schedule C loss offsets other federal income on Form 1040 subject to at-risk (Form 6198), passive-activity limits (an owner-operated business with material participation is generally non-passive), and the excess business loss limit. Source: Schedule C instructions: https://www.irs.gov/instructions/i1040sc
• IRC 461(l) 2026 threshold: $256,000 single / $512,000 joint (Rev. Proc. 2025-32 sec. 4.31); the 2025 law made the limit permanent (2025 amounts were $313,000/$626,000). Source: https://www.currentfederaltaxdevelopments.com/blog/2025/10/9/2026-inflation-adjustments-for-tax-professionals-revenue-procedure-2025-32-analysis (secondary; confirm against Rev. Proc. 2025-32 on irs.gov). Unlikely to bind for a small startup; disallowed amounts carry forward as an NOL.
• NOL: loss in excess of income carries forward indefinitely, limited to 80% of taxable income in later years, no carryback for non-farm losses. Source: IRS Pub. 536: https://www.irs.gov/publications/p536
• PA diverges: no loss carryforward or carryback, and a loss in one income class cannot offset another class. A PA Schedule C loss therefore does not reduce PA tax on W-2 compensation or interest and is not preserved. Sources: https://www.pa.gov/agencies/revenue/forms-and-publications/pa-personal-income-tax-guide/net-income-loss-from-the-operation-of-a-business,-profession-or-farm ; https://www.pa.gov/content/dam/copapwp-pagov/en/revenue/documents/formsandpublications/papersonalincometaxguide/documents/pitguide_netgainssaleexchngdispprop.pdf
• To-do effect: federal loss has value (offset plus NOL); PA loss has none. Timing of when costs become deductible is therefore a CPA planning topic.

Q5. Information returns

• 1099-NEC threshold: $2,000 for payments made after 12/31/2025 (indexed for inflation from 2027); $600 applied through 2025. Due to IRS and payee January 31. Sources: IRS Instructions for Forms 1099-MISC and 1099-NEC: https://www.irs.gov/instructions/i1099mec ; IRS FAQ: https://www.irs.gov/faqs/small-business-self-employed-other-business/form-1099-nec-independent-contractors/form-1099-nec-independent-contractors
• Attorney fees: the corporation-payee exemption does not apply to payments for legal services, so they are reportable even to an incorporated firm (same instructions). Payments made by credit/debit card are generally reported by the processor on Form 1099-K instead (confirm with CPA).
• The $750 attorney engagement: below $2,000, so no 1099-NEC if paid in 2026 with no other 2026 payments to the same payee; if paid in 2025, the $600 threshold applied and a 1099-NEC was due 2026-01-31. Confirm payment date, method, and total paid to that payee. Collect a Form W-9 from every attorney/contractor now.
• Foreign payees follow a different regime (W-8BEN, Form 1042-S); ask the CPA if any exist.
• PA: payors must withhold 3.07% on PA-source non-employee compensation paid to nonresident payees (including disregarded entities with nonresident members) when payments reach $5,000 per year (optional below), and file REV-1667 with the 1099s via myPATH by January 31. Sources: https://www.pa.gov/agencies/revenue/resources/tax-types-and-information/nonresident-withholding ; https://www.pa.gov/content/dam/copapwp-pagov/en/revenue/documents/formsandpublications/formsforbusinesses/employerwithholding/documents/rev-415.pdf . Applies only to PA-source payments to nonresidents; ask CPA whether any payee qualifies.

Q6. Pennsylvania

(a) PA PIT: owner of a disregarded SMLLC reports business net profit on PA-40 Schedule C; flat rate 3.07%; no loss carryforward/carryback; no cross-class offset (Q4 sources). PA does not simply follow federal start-up/loss rules. (b) Annual report (Act 122 of 2022): applies to domestic LLCs; filing window Jan 1 to Sep 30 each year starting 2025 (decennial report repealed); $7 fee; file at the PA Business Hub (file.dos.pa.gov). Transition: administrative dissolution/cancellation for non-filers applies only to annual reports due in 2027, six months after the due date; Act 122 requires a transition period, so 2025 and 2026 reports carry no dissolution consequence. Sources: https://www.pa.gov/agencies/dos/programs/business/types-of-filings-and-registrations/annual-reports ; https://www.pa.gov/content/dam/copapwp-pagov/en/dos/resources/business/graphics/annual-reports-one-pager.pdf ; https://www.pa.gov/agencies/dos/newsroom/department-of-state-alerts-business-owners-about-new-annual-repo ; https://hub.business.pa.gov/Home/QuickAction/882A08F5-EBEF-45C0-B804-6C53638D0094 . Not verified on a .gov page: any late fee, and whether a newly formed LLC's first report is due in its formation year or the next (third-party sites cite $35 plus $15 per missed report for reinstatement; confirm). Registered agent change/notices go through DOS, not this filing. (c) Local (flag, do not assume): local earned income tax on net profits (Act 32 collectors), local business privilege/mercantile taxes, municipal business registration. Rates and rules vary by municipality and school district; a zero-revenue year may still require a return or registration. Ask CPA (municipality not looked up here). (d) Forward note: PA treats canned software, whether electronically delivered, streamed or accessed, singly or by subscription, as taxable; custom software is not; labeling something a "service" does not make it nontaxable. A Raxx subscription sold to PA customers is likely in the taxable category, to be confirmed at launch (also multi-state nexus). Not a current obligation. Sources: https://www.pa.gov/agencies/revenue/resources/tax-types-and-information/sales-use-and-hotel-occupancy-tax/canned-computer-software-digital-goods ; https://www.pa.gov/agencies/revenue/resources/tax-types-and-information/sales-use-and-hotel-occupancy-tax/digital-products . Whether Apple collects/remits tax on App Store sales is unsourced; confirm.

Q7. Estimated taxes

• Federal estimates are generally required when expected tax after withholding and credits is $1,000 or more. Safe harbors: 90% of current-year tax, or 100% of prior-year tax (110% if prior-year AGI exceeded $150,000). A Schedule C loss produces no SE tax and reduces income tax; the LLC itself owes nothing at $0 revenue. Sources: Form 1040-ES: https://www.irs.gov/forms-pubs/about-form-1040-es ; Pub. 505: https://www.irs.gov/publications/p505
• PA has its own estimated-payment rules for non-withheld PA income: https://www.pa.gov/agencies/revenue/forms-and-publications/pa-personal-income-tax-guide/income-subject-withholding-estimated-payments-penalties-interest-other-additions

Q8. Deferred S-Corp election (questions, not a recommendation)

• Form 2553 is due no later than 2 months and 15 days after the start of the tax year the election takes effect (or any time in the preceding tax year); late-election relief exists (Rev. Proc. 2013-30). Sources: https://www.irs.gov/forms-pubs/about-form-2553 ; reasonable compensation: https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-compensation-and-medical-insurance-issues
• Commonly cited reasons an election in a no-revenue loss year is not advantageous: shareholder-employees must receive reasonable compensation through payroll (needs revenue to fund); added filings (Form 1120-S, PA-20S, payroll forms, state payroll registrations) and cost; losses deductible only to the extent of stock/debt basis; the self-employment-tax saving exists only when there is profit to split between wages and distributions.
• Ask the CPA: at what sustained net profit does election break even after payroll and filing costs; local tax effects; basis implications of early losses; PA S-corp treatment; the Form 2553 date for an election effective 2027-01-01 (2027-03-15).

Q9. EIN, bank account, BOI

• EIN: a disregarded SMLLC with no employees and no excise-tax liability need not use its own EIN for income tax (uses owner's SSN). An EIN is still commonly obtained: needed with employees or a corporate/S election, simplifies W-9s without exposing the SSN, and banks usually require it. Sources: IRS SMLLC page (Q1); IRS Get an EIN: https://www.irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number
• Separate bank account/records: no tax filing rule requires it, but commingling undermines liability protection and the profit-motive record. Sources: IRS Pub. 583: https://www.irs.gov/pub/irs-pdf/p583.pdf (attorney to confirm the liability point).
• BOI/CTA: FinCEN's interim final rule (effective 2025-03-26) exempted entities created in the United States (and U.S. persons) from BOI reporting; only non-exempt foreign reporting companies report. A PA LLC has no BOI filing obligation as of this date. Sources: https://www.federalregister.gov/documents/2025/03/26/2025-05199/beneficial-ownership-information-reporting-requirement-revision-and-deadline-extension ; https://www.fincen.gov/boi . Check for any later final-rule change (commentary: https://www.hklaw.com/en/insights/publications/2026/06/what-happened-to-fincens-corporate-transparency-act).

Q10. Other items; IRC 174A software costs

• New IRC 174A (One Big Beautiful Bill Act sec. 70302) permanently allows immediate deduction of domestic research or experimental expenditures paid or incurred in tax years beginning after 12/31/2024, or capitalization over at least 60 months, or 10 years under sec. 59(e). Software development is treated as research/experimental expenditure under 174(c)(3)/174A(d)(3). Foreign research is still capitalized over 15 years. Small business taxpayers (average gross receipts of $31 million or less for 2025) could elect retroactive application to tax years beginning after 12/31/2021; the amended-return deadline for 2022 was 2026-07-06 (past; likely irrelevant if the LLC began later). Sources: IRS Rev. Proc. 2025-28 (IRB 2025-38): https://www.irs.gov/irb/2025-38_IRB ; Grant Thornton explainer: https://www.grantthornton.com/insights/alerts/tax/2025/insights/full-expensing-of-domestic-research ; later method-change guidance reported as Rev. Proc. 2026-32 (secondary: https://aftertaxco.com/2026/09/04/rev-proc-2026-32-section-174a-research-residential-construction-methods/ ; verify on irs.gov).
• Why material: if the main spend is building software (developer pay, contractors, dev/test cloud, tools), those costs may be deductible in the year paid under 174A, possibly even pre-launch, rather than sitting as 195 start-up costs. Open issue for the CPA: whether a trade-or-business connection is needed pre-launch (historically Snow v. Commissioner, 416 U.S. 500 (1974), allowed a pre-operational 174 deduction; whether that carries over after the 2025 rewrite is unsourced to a .gov page; confirm). Also: internal vs. purchased software; foreign contractors; election/method statement; the owner's own time is not deductible wages for a disregarded SMLLC.
• Also bring: receipts for every expense (Pubs. 583, 535); mileage/home office only if the business is active (Pub. 587: https://www.irs.gov/publications/p587); Apple Developer, AWS, Heroku, Cloudflare invoices; vendor W-9 log; list of capitalized items (trademark, domains); bookkeeper's Schedule C Summary; bank and card statements. R&D credit (Form 6765, IRC 41) may become relevant: https://www.irs.gov/forms-pubs/about-form-6765

Options compared (2026 pre-launch costs; for CPA discussion only)

Jurisdiction flags

• Federal (IRS): income tax, 1099s, 174A/195, 461(l), NOL.
• Pennsylvania: Revenue (PA-40, 3.07%, no loss carryover, nonresident withholding); Dept. of State (annual report); local EIT/business privilege are municipality-dependent and not looked up.
• Other states: nexus and sales tax at launch; ask CPA.

Timing / deadlines

• 2026-09-30: PA annual report (possibly past; file now).
• 2026-12-31: tax year end; last day for year-end decisions.
• 2027-01-15: Q4 Form 1040-ES (if applicable).
• 2027-02-01: 1099-NEC for 2026 payments (>= $2,000 per payee).
• 2027-03-15: Form 2553 for a 2027 S election (if ever desired).
• 2027-04-15: Form 1040/Schedule C and PA-40.
• Past: 2026-01-31 (1099-NEC for 2025 payments, $600 threshold); 2026-07-06 (174A retroactive amended-return election for 2022).

(C) Questions for your CPA (with facts to have in hand)

1. Has the business "begun" for tax purposes, and as of what date? (Bring: formation date; date anyone outside you could first use the product; free-tier/beta dates; Cloudflare Access removal date; App Store release plan; first-charge plan; dated roadmap.)
2. Are the 2026 pre-launch costs IRC 195 start-up costs, capitalized costs, or current deductions? Should we make the 195 election, and for which year? (Bring: ledger by category and date; total pre-launch spend vs. the $50,000 phase-out line.)
3. How are LLC formation costs, registered-agent fees, trademark/IP attorney fees, and the $750 IP-assignment fee categorized for a disregarded SMLLC (not 248/709)? (Bring: invoices, engagement letters, payment dates.)
4. Does IRC 174A allow immediate deduction of our software development costs before launch? Which costs qualify (own time, contractors, cloud dev/test, tools)? Immediate deduction vs. 60-month election? Any foreign developers? (Bring: dev vs. non-dev spend breakdown, contractor invoices and locations.)
5. Should we file a Schedule C for 2026 if the business has not begun, and what will it show? What is the audit-risk profile? (Bring: the bookkeeper's Schedule C Summary.)
6. Hobby-loss risk and Form 5213: is the "personal-use-only" posture a profit-motive problem, and should we file Form 5213? (Bring: business plan, projections, time logs, advisers consulted.)
7. What other 2026 income do I have (W-2, investments, spouse)? How does the federal loss interact with it, and do at-risk/passive/461(l) limits apply ($256,000/$512,000 for 2026)? Any NOL planning? (Bring: 2025 return, 2026 YTD pay stubs, AGI.)
8. Does PA follow the same start-up/174A treatment? Given no PA loss carryforward and no cross-class offset, does deduction timing matter for PA? (Bring: 2025 PA-40.)
9. Which local taxes (earned income tax on net profits, business privilege/mercantile, registrations) apply for my municipality and school district, and is a zero-revenue return required? (Bring: residence municipality, school district, any local tax notices.)
10. Is any federal 1040-ES or PA estimated payment advisable for 2026 given other income? (Bring: YTD withholding, prior-year tax and AGI.)
11. Do any 2025 payments (including the $750 attorney fee, if paid in 2025) require late 1099-NECs? Is PA nonresident withholding/REV-1667 triggered for any payee? Are W-9s on file? (Bring: payee names, addresses, amounts, payment dates, payment method.)
12. Did the LLC exist in 2025, was any 2025 return/Schedule C filed, and was a 2025 PA annual report required/filed? Should 2025 be amended? (Bring: formation certificate, 2025 filings.)
13. S-Corp: at what net profit does the election pay for itself given reasonable compensation, payroll cost, PA-20S, and basis limits? When must Form 2553 be filed for a 2027 effective date? (Bring: revenue forecast, pricing, payroll quotes.)
14. Is an EIN on file, and are vendors getting W-9s with it? Are bank/card accounts separate from personal, and is there commingling to unwind? (Bring: EIN letter, bank/card statements.)
15. Should I begin tracking qualified research expenses now for a future R&D credit (Form 6765)? (Bring: dev time records, contractor agreements.)
16. Sales tax readiness: PA SaaS taxability, multi-state nexus, Apple IAP collection. (Bring: launch states, pricing.)
17. Substantiation: what documentation is needed for cloud/SaaS subscriptions paid by personal card? Is home office or mileage claimable now? (Bring: statements, home-office measurements.)

(D) VERIFY THESE PREMISES

1. The LLC is a PA single-member LLC with NO tax election (no Form 8832, no Form 2553). If an election exists, most of this changes.
2. Formation date, and whether the LLC existed in 2025 (affects 2025 annual report and 2025 return questions).
3. $0 gross receipts in the year, including no App Store receipts, refunds, affiliate or interest income inside the LLC.
4. The business has not launched to any third party; "personal-use-only" means no outside user.
5. Owner may have W-2 or other income; filing status and spouse income unknown.
6. The bookkeeper's ledger and Schedule C Summary are complete and reconcile to bank/card statements.
7. Payment date of the $750 Schwartz engagement and any other payments to the same payee (2025 vs. 2026).
8. Registered agent (Northwest) fees are paid by the LLC.
9. No employees; no contractors on the code (or W-9s and IP assignments collected); no foreign contractors.
10. PA annual report not yet filed for 2026 (2025 status unknown); late-fee language and first-report timing not verified on a .gov page; one DOS annual-reports URL returned 404 so DOS search-result summaries were relied upon.
11. Municipality not looked up; local taxes unverified.
12. Rev. Proc. 2025-32 section number and Rev. Proc. 2026-32 content came from secondary commentary; confirm on irs.gov.
13. Items marked "unsourced" (case-law standards, trademark capitalization, Apple tax collection, Snow after 2025 rewrite) need CPA confirmation.

Sources

• IRS SMLLC: https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-companies
• IRS Pub. 535 start-up costs: https://taxmap.irs.gov/taxmap/pubs/p535-034.htm
• IRS Instructions 1099-MISC/NEC: https://www.irs.gov/instructions/i1099mec
• IRS Rev. Proc. 2025-28 (IRB 2025-38): https://www.irs.gov/irb/2025-38_IRB
• Rev. Proc. 2025-32 commentary: https://www.currentfederaltaxdevelopments.com/blog/2025/10/9/2026-inflation-adjustments-for-tax-professionals-revenue-procedure-2025-32-analysis
• Federal Register BOI interim final rule: https://www.federalregister.gov/documents/2025/03/26/2025-05199/beneficial-ownership-information-reporting-requirement-revision-and-deadline-extension
• FinCEN BOI: https://www.fincen.gov/boi
• PA DOS annual reports: https://www.pa.gov/agencies/dos/programs/business/types-of-filings-and-registrations/annual-reports
• PA DOS one-pager: https://www.pa.gov/content/dam/copapwp-pagov/en/dos/resources/business/graphics/annual-reports-one-pager.pdf
• PA PIT Guide, business net income/loss: https://www.pa.gov/agencies/revenue/forms-and-publications/pa-personal-income-tax-guide/net-income-loss-from-the-operation-of-a-business,-profession-or-farm
• PA nonresident withholding: https://www.pa.gov/agencies/revenue/resources/tax-types-and-information/nonresident-withholding
• PA canned software/digital goods: https://www.pa.gov/agencies/revenue/resources/tax-types-and-information/sales-use-and-hotel-occupancy-tax/canned-computer-software-digital-goods
• Grant Thornton 174A explainer: https://www.grantthornton.com/insights/alerts/tax/2025/insights/full-expensing-of-domestic-research

Before you act on this, consult a CPA licensed in Pennsylvania (and a business-formation attorney for the annual-report and BOI items).