Starting a business?

a friend of mine were arguing about starting a business. I need to know who is right who is wrong.
He says you can start a business and get it Incorporated even if you don't sell a product or even perform a services and use it for the tax breaks and stuff. I keep telling him that's a dummy corp and is

a friend of mine were arguing about starting a business. I need to know who is right who is wrong.
He says you can start a business and get it Incorporated even if you don't sell a product or even perform a services and use it for the tax breaks and stuff. I keep telling him that's a dummy corp and is illegal. anyone know who is right?

Other answer:

Ann:
any business has to file a tax return and if you don't show a profit in 3 out of 5 years you are considered a hobby and not a business, and incorporating is not a cheap process, in addition to federal taxes there will be state taxes. your friend is looking to cheat the system
tro:
it is possible that a corporation that has been established could have at least the annual state minimum income tax they can claim even if they had no income
but any business which has no motive for profit is not able to claim the expenses so in this case it has been a hobby, even it if was incorporated
and when it has been with the state the annual taxes will be due until it is decommissioned, legally with the state
Eva:
If you have no investment in the business, you can't deduct any losses, so it's pretty much a moot point. Guys that think they can beat the system try this every now and then. You can visit them upstate on Tuesdays and Thursdays.
Jack:
What would you get tax breaks on..you would have to buy things for the company that make sense to another person so i believe you are right.
keri:
Informative discussion, just what I was searching for.
Share

Leave a Reply

Your email address will not be published. Required fields are marked *