Business Question

[TravisR100]

I might should have posted this in a different forum but since I'm looking at buying a HAAS machine I'm posting it here.

I'm going to be buying a machine primarily for myself. At some point however I may take on jobs and make some money with it. I understand that if I take any jobs and accept money for doing so, it changes things. I may have issues with my homeowners insurance, I probably need some form of liability insurance, etc.

So being that I would prefer to do things the right (legal and prudent) way, should I go ahead and buy the machine through a business entity, check into insurance, etc. from day one or should I wait until such time as I accept money for doing a job?

[Hele63]

TravisR100,
there are many answers to that question. First if you do ever plan on doing outside work you don't really need liability insurance unless your doing really big jobs for big company's. But to do small jobs i would start under a business name, just wait till you have enough work to do that. If you start under a business than you have property tax on the equipment that the company owns and you have to pay taxes to your local gov for the equipment your using to make money. If i were you i would sit and talk to a good CPA or lawyer that knows what you need in your area if you start a business, if you do outside work the people can always 1099 you personally for work done. Personally i would start out and see what happens
Will

[TravisR100]

Yeah, definitely sitting down with my accountant. To offset those taxes however I would think I could not only depreciate the machines but for a time period have losses as well. Obvioulsy not a simple question to answer.