Business set up

A

AWGunS

Joined
Sep 16, 2006
Messages
616
Hey gentlemen,

I am curious as to how some of you might have set up your business.

I have an interest in making knives, and I realize I am looking down the road aways by asking the question of business setup, but I am looking for the benefits that one might get for purchasing equipment, supplies, overhead, etc, and then writing it off, like any other business does.

I have supplies coming in this week (hopefully, they are on order) for 4 knives, so hopefully, in the next 2-3 weeks, I'll have a couple to show.

I am Aaron by the way.
 
I've been thinking of the same thing lately.....wondering what the benefits are as opposed to keeping it a hobby status. (in leather work).

I would like to be able to buy wholesale......and things like travel expenses to the Blade Show could be a write-off.....
I know one thing for sure, as soon as I register my company name the township will be on my ass to tax me for shop space, equipment, etc......don't know if I want to get into all that.....

More research req'd....
 
I believe one of the biggest problems that comes up is the liability insurance thing. However, you can still set up a business without this. Get some clarification on this if possible. I don't have the information to give. Frank
 
A lot of neighborhoods do not allow businesses to operate within their grounds, so if you're in that, you're screwed.
 
Well, you definitely will have to pay taxes on your earnings, sales tax or use tax will have to be filed as well.

But imagine being able to write off those belts, part of your electric bill, updates to equipment, and anything else that fits into the realm of your business. Including Blade trips.

Yes, there are some hassles, but ultimately, I think it would be worth it.

There is the liability protection it affords as well. If you are a business entity (other than Sole Proprietor), in general, only your business assets are at risk. If you are working out of your garage, your home should be protected in case of a lawsuit, I would think. I am no attorney, so don't quote me on that.

I am going to be working on the machinery I have now-1" Delta grinder, small Sears Drill press, files, and a vice. But if it is something I would like to continue, and my knives are marketable, it would be nice to write off all or part of that new $2000 grinder, or that new HT oven.

Some might think I am talking out of turn, as I have yet to make a knife. But being around all the people that own their own busineses, I would like to see the tax code work for me for once, like it works for them.
 
go mike said:
A lot of neighborhoods do not allow businesses to operate within their grounds, so if you're in that, you're screwed.
Click to expand...



True. In that case, its best to keep it under wraps.

But there are cities, towns, townships that do allow business run out of your home. You just have to check your codes.
 
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