qualified expenses become questionable. You will also have to prepare financial statements at the end of each fiscal year - which can become costly. You will need a piece of accounting software to manage all your debits and credits and if you have no understanding of accounting this can become difficult. I think you have to incorporate the opportunity costs along with the incremental costs into your calculations before you decide to do this. If you are making less than $50,000 a year it is pretty much pointless. If you were to do anything to save money on taxes, it would be best to move to a state like Nevada, where there are no state taxes on personal income.
- CPA in Canada for what it is worth. I know our tax systems are a lot different.