Well you can still TOTALLY write-off any business related expenses. Either way you'd write all that off. The main difference tax-wise is you only pay income tax on the money you PAY yourself, not all the income you bring in. There may be others but that's the main one.
I've thought for a long time I should Inc. I pay a ton in taxes and asset protection is always a good thing. Plus it would look more professional.
However I just asked my new accountant about it and he said he does not advise it for sole proprietors unless they really need asset protection for some specific reason. AND he said the asset protection would ONLY work if you totally treated the company as a corporation and religiously did all the paperwork. I'm terrible at getting paperwork done and really don't need a bunch of extra busy work in that area.
Here's what my account said:
Quote:
"A couple of things to keep in mind. First of all I am not one in favor of setting up Corporations unless it is truly for protection. If you are really concerned about lawsuits then it would be good. However, in talking to the attorney we used I asked him about the Corporate vale being pierced if you were sued. He said as long as you were following all the rules of a Corporation it would be hard to pierce the Corporate veil.
Most small Corp. (Individual or family owned) don't keep good records. They mingle funds etc"
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All in all I've heard S Corp is much better than LLC if you decide to Inc.
I'm neither an accountant or any attorney, so this is not professional advice, only my opinion.