Quote:
Originally Posted by BWillie
Dude...teach me. I am lazy. I will pay you, just tell me what I need to do and how to officially set the business up. I hear in Kansas if you have an LLC you don't even have to pay taxes on the earnings cuz of Brownback. I just don't know how to do it. I need a step by step because I have an extremely low iq and lack the intelligence to succeed.
My home office use is legit for what I do, but it's not enclosed in a room. It's just in my basement suite that also has a kitchen, bathroom etc but no windows. Not sure if I can even deduct a home office.
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If you have an official business and you are using the office space to conduct business then you can take the write off. There are a few rules. For example, the space has to be the primary location for the business, and it has to be used exclusively for the business. That said, there are special circumstances (ie. Doctor, Dentist, etc.) where your primary location might be a place separate from your home, but then you use a home office to do bookkeeping and general office tasks for the business. In this case you'd still be able to take the deduction. Also, things change if you're taxed as S Corp or if you are a C Corp, but you can still get the deductions (at that point you either rent your home office to the business, or the business can reimburse the employee...and yes, if you're a sole proprietor then you are both the employer and the employee.) The S Corp is where huge tax benefits begin to kick in, but the business needs to be generating some decent revenue in order for that part to come into play. In fact, the Kansas trick you're talking about is when you have "pass-through" income, which is what you'd have with an S Corp.
I'm happy to help you out and give you some good resources to do more research on your own. Obviously, you should talk to a CPA/EA/Attorney, but they will back me up on everything I've said.
If you want to PM me some details about what you're currently doing I can give you some quick guidance on the best way to set it up as an official company.