I do plan on meeting with an accountant but I wanted some feedback from some of the pros on here. First is a specific question on taxes. I planned on incorporating in january to keep things simple. I was wanting to buy some gear to use now. If I buy stuff now before I incorporate will I still get any tax benefits in 2013?
Also Im thinking sole proprietership at least in the beginning to keep things simple but I was wondering how many pros were Sole Prop and how many were LLC
If want the write-offs in 2013 you need to buy in 2013.
I believe that the S Corp is the best option since LLC's are defined at the state level so it is hard to make a recommendation on them because while they are similar to S Corps they are different for each state and in some states they are poor choices. S Corps are defined federally so they are consistent no matter where you are.
S Corps allow you to avoid the "self-employment tax" on a portion of your income and it offers some protection to your personal assets and is a great option for anyone serious about running a business.
Thanks Guys,
So the advice was basically this: If You are doing well S-Corp is the way to go for reasons Mr. Reichman Pointed out. However if you are doing less than 25k profit that sole proprietorship would be cheaper. Also since I have spent money and have startup costs incurred this year in 2012 I can claim them on my return as a sole proprietor. So the plan for me will be to file as a sole prop for 2012 then start 2013 as sole prop. I figure 2013 I will be starting slow because I'm not amazing yet and I'm assuming marketing will take a while to start to pay off. Hopefully by 2014 Im starting to roll and I can start as an S-corp.
