 Re: Setting Up Business - Need Help
because you will be doing it sole proprietor, whether or not you actually spend the money that you receive, you must claim all income on your personal taxes.
IF on the other hand, you do end up reinvesting it all, those expenses will drive down the income and you will have a very small true increase in your taxable income.
To keep yourself separate, you'd have to at least establish an LLC. Which are becoming more and more popular, cheaper, and easy to manage. PLUS! you don't have the double taxation of a normal corporation. Definitely something to talk about with your lawyer or accountant that you've been in contact with (which is my big hint that you need to do this step 1st!) |