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You can deduct business expenses as a sole proprietor. You just have to keep track of them and keep receipts. I use a spreadsheet and a folder with scans of rec
by gregjor 3y ago
You can deduct business expenses as a sole proprietor. You just have to keep track of them and keep receipts. I use a spreadsheet and a folder with scans of receipts.
The IRS got wise to tricks people used to restructure income with LLCs and S corps a long time ago. Complex business and tax structures for a solo or small business will just attract attention from tax authorities.
Every situation is different, especially with employees or valuable/depreciable inventory. Consult a professional if those apply, they usually don’t for solo freelancers. Sometimes you run into clients who think they can only pay to a corporation, they usually mean they want an EIN, which you can get for free online from IRS. Sometimes clients want E&O or liability insurance, I have either talked them out of that or passed on them — not worth the expense.