small business taxes for the U.S.

[Art]

Hi Shirley,

It varies depending on individual situation. If you can, structure your business as a sole proprietorship and hold all assets (except the business itself) with someone unrelated to the business in any way as tenants by the entireties. Lease everything from your T by E relationship. You need a lawyer to set it up, it's called "Judgment Proof". This is really necessary if you are doing something that can have liability issues. You need to be "Judgment Proof" even if you are a corporation; a simple, or even complex corporation cannot shield you from liability. In some states (like my state) there is a $600 yearly filing fee for corporations, used to be just certain corps or PCs or LLCs, but they have finally extended it to every entity except individual or fiduciary (Charity) relationships. State doesn't have and never will have enough money, they want yours.

Art

Great dialogue - informative and clearly tested.

So, what y'all have to say about structure - Individual, Partnership, LLC. S-corp, C-corp etc.??

[esantoro]

I've gotten some contradictory information elsewhere:

All business activity is done up on the schedule C, itemized business deductions included. For the rest of my 1040 I can take either the personal deduction or itemize the personal deductions, whichever is higher.

Does this make any sense, relative to what has already been posted in this thread?

Ed

[esantoro]

I'll look it up in the books I have, but I thought I'd ask anyway.

Is there a particular form to file if you want to defer some of your deductions for future years when you anticipate higher income?

Another question:

Say that on your 2008 return, you defer $2000 of deductions for the 2009 year, could you then just add that $2000 into your 2009 deductions and from that lump sum decide how much you want to defer to a later year after 2009?

To ask this question another way, If you defer $2000 from 2008 to 2009, are you locked into taking that deduction in 2009, or, depending on 2009 finances, could you again defer part or all of that $2000 to a year in the future after 2009?

Thanks,

Ed

[esantoro]

Found it:

Net Operating Loss:

You can use a year's net operating losses to offset income in future years. You may carry these losses forward to as many as 20 future years. You also have the option of carrying back losses to the previous two years.

Instructions are found in IRS Publication #536

information from "422 Tax Deductions" by Bernard Kamoroff, C.P.A.

Ed