Tax responsibility and write off help.

[markblanchard13]

I'm starting a part time photo business (sole proprietorship, in PA) with a studio in my house

I was wondering if anyone know good websites (or specific IRS forms) that would be helpful regarding the taxes I need to file, and more importantly, what deductions I'm entitled to take

[Bubble]

the IRS will give you up to $100K to $108K write off in tax deduction within the 5 years period.

Let say you spend $20,000 in 2008, you can write it off 100% or spread out in 5 years ( 20% of $20,000 for 2008 )

Your CPA will be the one can give you the best info/advice.

[Tigershark]

you might find some liablilty advantages of an LLC you can still file on your Schedule C you just have a little more protection. Also check with your Sec of State's office, you can get your FEIN online for free but it is best to have everything set up before hand god luck

[sfaust]

The best advise anyone here can give you is to go see a CPA. If you get bum advice here, it could cost you plenty. You may start off wrong for a few years, get corrected by the IRS, and owe back taxes, penalties, and so on. its not worth the aggravation, especially when you can avoid it for the price of a new lens. And if thats too expensive, you should probably rethink your idea of starting a new business any way. Lack of capital is the number one killer for small businesses

[BaliHai]

Get an accountant, we opened up in PA a year and a half ago and the best money I spent was on the accountant (contrary to my husband's belief) since neither of us were used to owning a business. Also check out the SBDC (Small Busines Developement Center) it is usually run out of a college or university with satellite offices in the communities ours is thru Gannon University. The SBDC helps people start their businesses on the right track as well as answer any questions they might have, its also a good networking tool.