# Are there any advantages to registering my business now or should I wait until the new year?



## vai (Dec 24, 2009)

I plan to register my new business as a Sole Proprietorship. It will be only me at first and I want to start off by making custom t-shirts for awhile until I can generate enough money to have my own brand. I'm still in the research stage and hope to be ready to search for customers/clientele by mid January. Funds are very limited and I already spent a lot on equipment and supplies recently this December. I want to deduct what I spent as a loss for my start up. Should I register now in 2009? Or should I wait until I start making a profit?


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## Mtnview (Nov 5, 2009)

It has been a while since we started and we did that in Aug of 02 (might as well say mid year). If you aren't going to be selling until Jan of next year the only thing I can think of would be sales tax where you are. If you file now you may have to go through the paperwork of filing last quarter sales tax for your state. Since that would be zero sales and there are only a few more days in the year I would wait.


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## splathead (Dec 4, 2005)

If you file now, the cost of filing would also be a deduction for you this year. If you wait to file until next year, you won't be able to deduct until next year.


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## BDROCKS (Dec 27, 2009)

Per the advice of my CPA when you create a Corporation you can write off everything for the entire year, so even if you created your corporation on the last day of the year you can claim all write offs for 2009. Create a coprporation if you plan on making serious money with you clothing line.


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## splathead (Dec 4, 2005)

BDROCKS said:


> Per the advice of my CPA when you create a Corporation you can write off everything for the entire year, so even if you created your corporation on the last day of the year you can claim all write offs for 2009. Create a coprporation if you plan on making serious money with you clothing line.


He can write off legitimate business expenses regardless what his legal status is, even if he does business as an individual. 

While incorporating may have been the best route for you, it's not the best route for everyone. 

Making serious money in this business has nothing to do with whether you are a corporation or not. In fact, due to the double taxation aspects of incorporating, one could argue the opposite.

In the end, everyone's situation is unique. The best advice we can give is to talk with a tax professional.


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## BDROCKS (Dec 27, 2009)

Was just trying to help, this is a place where you can verbalize your personal opinions and experiences right?? In my personal and experience the Corporation was a great way to go, your right, to each is own.


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