Can a LLC run without paying sales taxes and report at the end of the year?

NO NO NO. You are really wanting to get your self into a lot of trouble with your local taxing authority before you even get smart and LEARN every thing that you really should know and will have to do SO go to your local tax office NOW and ask them to give you and teach you what all will be involved with and about your sales tax responsibility before you get in to this over your head. You may even want to get some face to face assistance to get all of your bookkkeeping and written records that you will need for all of your business operation. Before you do jump into this LLC as you are proposing above you should also learn some things about the LLC and the extra cost and tax forms that you may be required to file IF you do choose to be a LLC for your situation that you are now in. http://www.irs.gov/businesses/small/article/0,,id=98277,00.html The federal government does not recognize an LLC as a classification for federal tax purposes. An LLC business entity must file a corporation, partnership or sole proprietorship tax return. An LLC that is not automatically classified as a corporation can file Form 8832 to elect their business entity classification. A business with at least 2 members can choose to be classified as an association taxable as a corporation or a partnership, and a business entity with a single member can choose to be classified as either an association taxable as a corporation or disregarded as an entity separate from its owner, a “disregarded entity.” Form 8832 is also filed to change the LLC’s classification. Effective Date of Election Forms for Limited Liability Companies (LLC) http://www.irs.gov/businesses/small/article/0,,id=158448,00.html Hope that you find the above useful 10/04/2011

you are required to file forms annually when you form an LLC, a Corp, a Partnership etc and in some states you have an annual minimum tax to pay regardless of the income of the organization frankly forget the LLC at this time, maybe in the future when the business is really booming you might consider it but if you are selling retail goods, that are taxable you will need to register with the state sales tax agency to charge and collect sales tax you need to look at forms 1120, possibly 1065, but most definitely Sch C of the 1040, to see what you will be required to report on any of those forms and yes, the 'bottom' line is what you will pay taxes on(you or the corp)

No and no. Sales tax is paid on the schedule set by the state - you can't just wait and file at the end of the year. And it's levied on SALES, not profit, so any expenses you have are irrelevant.