I took a lot of my early video expenses off as a business expense because i really did use still cameras to send photos of merchandise to potential customers, etc.
I also offerred videotapes of the entire Art Deco lighting business I ran but no one seemed to be that interested. I had a corporation since 1967. There are yearly "minimum corporation taxes you have to pay. Setting up a corporation costs thousands of dollars today. Just liquidating my corporation a year ago cost a couple thousand dollars. I was always told I was "over-structured" but simply remained a corporation year after year. That makes it necessary for you to get Workmen's Compensation. You might have trouble getting "group insurance" for making some of your projects. The IRS used to be very much on the lookout for people using "their hobby" as a supposed business. I don't know what the tax laws are today but it used to be that you had to show a profit after three years. Like I said, I'm not an accountant. I have an accountant because, among other things, filing corporate tax returns with depreciation schedules, etc. are outrageous. They did have generous "investment allowances" for "new equiptment" which i recall being about $30,000 annually. it was like they were trying to encourage you to invest in a new truck, better equiptment, etc. Still, i wouldn't ever recommend anyone set up a corporation. It is a nightmare owning one. Randolfe (Randy) Wicker Hoboken, NJ --- In videoblogging@yahoogroups.com, T.Whid <[EMAIL PROTECTED]> wrote: > > My own personal story FWIW, > > I've been losing money on my outside business as a sole proprietor for years > (I'm an artist). My accountant told me that until I'm earning lots of > cheese, incorporating is more trouble than it's worth. > > He also said that as long as I show growth year over year it doesn't matter > how much money I dump into it and can continue to lose money for years. It > takes a lot of losses and time to grow high-risk businesses (like being an > artist or for-profit vlogger). The rewards can be pretty significant if you > stick it out. Luckily this year I made a thousands on the biz, mostly from > one big grant. > > I would suggest getting a good accountant that knows your business (in NYC, > where I am, it's easy to find accountants that deal exclusively with > creatives/artists). > > You should also be careful about being flip about earning income. You are > serious about it, it's a business. > > On 2/15/07, Tony <[EMAIL PROTECTED]> wrote: > > > > The IRS only knows two types of businesses, C-corps and S-Corps. > > S-Corps are usually the sole proprietorships. > > > > States know businesses as profit, non-profit, and LLC. I know many > > people that have registered S-Corps and haven't had a problem with the > > IRS. > > > > --- In videoblogging@yahoogroups.com <videoblogging%40yahoogroups.com>, > > "wtftoadsoup" <toadsoup@> wrote: > > > > > > It might be better to form an LLC for your business. Operating as a > > > sole proprietor that loses money sometimes looks just like a hobby to > > > the IRS. > > > > > > > > > here is a bit of information on both entity types > > > > > > > > > > http://aridni.com/2007/01/the-lowdown-on-the-llp-and-the-llc-for-any-company/ > > > http://aridni.com/2007/01/the-good-the-bad-and-the-sole-proprietorship/ > > > > > > > -- > <twhid>www.mteww.com</twhid> > > > [Non-text portions of this message have been removed] >
