Can making your home based business a Corporation give you a tax break?
MES asked:
If anyone knows anything about taxes can tell me if I am self employed with a home based business and file it as a Corporation, can this help me in any way on my taxes.
If anyone knows anything about taxes can tell me if I am self employed with a home based business and file it as a Corporation, can this help me in any way on my taxes.
If yes, please explain.
Tags: Home Based Business, Self Employed, Taxes
my best option is contact wit a taxes preparation officer
also you may look over irs.com for the common answers for this question
no you can’t unless you have a lot of employees BUT if you are from Canada apparently if you have somebody renting your basement you can now claim 1/2 your utilities instead od 10 %
absolutly no.
matter of fact it will cost you more each year than you might even save in taxes.
you need BIG money to save in this area.
don’t swallow the ‘legal’ safety on this either.
you get taxed and corp gets taxed.
I dont know what you mean by home-based business. Is it Amway or Mary Kay, where you are just selling stuff that you buy from someone else? If this is the type of business then you wont have any additional savings by incoporating.
If you have employees/customers in your home regularly and you want to ensure that they cant sue you personally, then incorporating may be advantageous. But generally, the only advantage of incorporating is to limit liability.
You can take all deductions that a corporation can, by just filing a schedule C (sole proprietorship) with your tax return. You can deduct all ordinary and necessary business expenses. You may also be able to deduct your home office expenses if you conduct business there and meet with clients there.
Be sure to document all business expenses and use a separate bank account with debit card. This way all of your income and expenses are in one spot and on one statement, in case of audit. When you want to pay yourself, just write a check to yourself and deposit into your regular checking account.
Be sure to also write down all mileage in a log, so that you can deduct your auto expenses.