Future expenses will most likely add up to more than the incorporation fee, so it makes sense. Stuff like traveling, mileage, a new computer, rent if the busine

Future expenses will most likely add up to more than the incorporation fee, so it makes sense. Stuff like traveling, mileage, a new computer, rent if the business expands. As the business grows he will be able to deduct more. However, I believe you can also deduct as a sole proprietorship, so the tax benefits of an LLC are more about removing the double taxation of corporations than being able to deduct expenses. But an LLC makes things clearer and formally separates your business from your personal life, so you can track exactly how well its doing and what expenses and income are associated with each.