Monday, February 10, 2014

Got a small business question here, can anyone help? -

Me and my dad are starting an internet business selling used horse tack. We were wanting to make this into a small business. We live in the state of Missouri and I was wanting to know what we had to do to make it to where we were considered a small business and could write off cell phones for calls and to check internet on our phones. Thanks for all the help.

you can operate as a sole proprietorship and try to keep track of when you used your cell phone for work and when for personal, but what i would suggest is incorporating, to do that, what you need to do is consult with an accountant to determine what type of corporation you should form (my guess is it will be an S corp), then you will have to have a lawyer draw up all the paperwork. You will easily spend $750 just for these consultations. Despite that, you really should incorporate, it can provide excellent tax breaks that will not only benefit your business but your personal finances, it also makes things cleaner and if you were ever audited by the IRS, it s easier to prove what is what. on top of that, if your business starts generating serious revenue, you ll just about have to incorporate anyways.good luck with your business, internet businesses are incredibly comptetitive,

This is from a non-tax-professional.The easiest way to make this work the way you want is to simplify everything. What I mean is, combine as much as you can into a single bill. Run this by an accountant just be be sure:My local cable company offers both internet service AND phone service. I use both for home and business, so I can t write them off. However, if I had a regular land-line and only used the internet for business, it would be an easy one-bill write off for business expenses. As for cell phones, just be sure they aren t being used for personal use - or at least that you re not incurring any extra expenses because of personal use.Hopefully that gets you on the right track.

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