Hi, my question is: in US, can I have my company in paralle with my current job? Of course "my company" will do something else different from my current job.
For example, I may do some potential product development in "my company" and I will spend money on it. When I file tax return, can I put these expense for tax deduction?
Thanks!
-Goat
2007-04-24 07:17:01 · 3 answers · asked by goat 1 in Business & Finance ➔ Careers & Employment
Yes. Though you may not want to talk to much about "your company" at your job. It may make them think that you aren't giving them 100% effort and your mind may be other places.
You can not start a company just to get a tax deduction. You must have a profit motive. The general rule of thumb is that you must be profitable in 3 of every 5 years. If not, the IRS will call your company a hobby and disallow your deductions.
2007-04-24 07:21:49 · answer #1 · answered by Wayne Z 7 · 0⤊ 0⤋
Why not? Keep VERY good records of your 'company' for tax purposes especially and don't talk to anyone at work about it. Business owners don't appreciate employees who is in the same 'trade' than themselves very often, you know.... Just keep proof of everything and make notes of transactions should you run into a quibble with your employer at some time.
2007-04-24 14:40:10 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You can run your own business with or without a regular job, as long as you avoid conflict of interest.
You need to keep your business expenses seperate from your employee expenses (never mix them), and you're allowed to deduct from your business income almost all of whatever you spend to bring in income for your business.
2007-04-24 14:22:35 · answer #3 · answered by Anonymous · 0⤊ 0⤋