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Small biz question

episodic

episodic

Lifer
Can someone in plain language tell me what tax advantages you can get if you run a small biz from your home? Will I see any benefit if I am already low income from my primary job (less than 25k a year) and qualify for the EIC?

I anticipate loosing money for 2-3 months starting the business, and then it will not be a major source of income. (around 400-500 extra a month profit). . .

I don't want to spend alot of money going through and accountant and such.

I'm cosidering doing an LLC as well, any thoughts on that?
 
You won't get any tax advantages. Self employed small businesses get hit harder with taxes. In essence, you pay twice.
Working for other people, my tax rate was about 15 to 20% depending on my income. Since I went self employed and started my own business my tax rate has been 25 to 33%. You can write off some expenses and get deductions (such as home office, utilies, equipment, etc) but your base tax rate is still higher.
 
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