hobby businesses

[zahc]

I'm fixing to buy a bunch of shop equipment and set up a garage shop. I would like to hawk my wares, should anything I make become sellable, maybe get some welding jobs, art furniture, from the front yard, etc. I think I should set up a business so I can keep track of what the whole venture sets me back, and also because I understand that I can write the equipment and consumables off my personal taxable income (I have a day job and no other income).

Does anyone have experiences setting up this type of hobby business (FFL maybe would be similar)? I think I want to get some type of tax ID and set up a proprietorship, at least until a business model gels to the point I start selling products and need some limited liability company. My current understanding is that LLCs do not have the same tax advantages as a proprietorship for personal income tax purposes.

[mtnbkr]

Visit your local Small Business Technology Development Center.  They're there to help people like you and paid for by your taxes.

Chris

[cordex]

My current understanding is that LLCs do not have the same tax advantages as a proprietorship for personal income tax purposes.

I believe a single member LLC is treated exactly like a sole proprietorship (that is to say, both are passthrough entities for which all income and expenses are reported on your 1040) by the IRS. State laws may vary.

[roo_ster]

Visit your local Small Business Technology Development Center.  They're there to help people like you and paid for by your taxes.

Chris

This.  Plus avoid sole prop.  Probably end up s corp.

[zahc]

I started to sign up for my local small business development mentorship program, but they immediately wanted to know my address, nature of my business, etc. Which I guess the government has to find out eventually, but I flaked thinking that I would find out there is a state law against making (possibly) guns in your garage or something.