Hello,

I started a side business of investment consulting four years ago and structured the business as a multi-owner LLC. I have had four years of losses, but progressively higher income and lower losses in the LLC over that time period. The business should be scaleable as the revenue comes in to cover expenses, but it has been more difficult to do so than I originally anticipated although I have been trying to make an honest profit.

My question is, if I file for the fourth year in a row with losses (2013 taxes), will that raise red flags? What issues should I be aware of to legally minimize my chances of an audit or making a mistake? The expenses are legitimate (I believe) but I just want to know what I am setting myself up for if I have four years of losses.

Thanks!