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Originally Posted by Buehler445
Lots of good information here.
1. If you incorporate or start an LLC, it will indemnify you from business risk - biggest thing there is if you are sued for a billion dollars they fold up the business but can't touch you. If you dig too deep in deducting stuff it will pierce the corporate veil and you are personally liable.
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I stepped over this before, but it's an important point. The best way to protect from this is to maintain the company properly. What does that mean? Keep actual records of board meetings, minutes (notes), etc. If you're claiming travel, keep documentation of why the travel is for business (ie. board meeting, advisor meeting, checking up on a rental property, employee perk, etc.) This is not a difficult thing to do with Google Drive or something similar on your phone. Just take quite notes about who you're with and what you're doing. If you're thinking that you may want to write off some particular travel, dining, entertainment, take some quick notes.
If you're ever audited or taken to court and you can present clean documentation for all of that sort of stuff you'll be just fine.
So yes, owning a business will require some organization. Clean books, clean company maintenance, and legitimate tax avoidance (not evasion...big difference) and you'll be just fine.