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greene@xxxxxxxxxxxxxxx (Robyn Greene) wrote ...
>>
P.S. Everyone's tax situation differs - and everyone should consult with an
accountant/tax lawyer etc. before making important tax decisions.
>>
As my accountant has explained it to me, one significant advantage
of incorporation (as an LLC, at least) is that all business expenses
become deductible starting with the first dollar. If you simply file
a personal (or joint family) return, you need to have business expenses
exceed the IRS threshold of AGI before they are deductible (I believe that
percentage is currently 2%).
Obviously, you have to take into account the initial (and annual) costs of
incorporation, but the breakeven is still fairly low.
Ken
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