Are you missing tax deductions you’re entitled to? Small business owners, self-employed workers, and independent contractors can write off many legitimate business expenses immediately, reducing the amount of income on which they pay taxes. But if you overlook applicable deductions or fail to keep adequate records that will back up your write-offs during an audit, you give up opportunities to cut your tax bill.
The Schedule C tax form used by sole proprietors to report business profit or loss has 21 line items for business expenses—including such catch-all categories as “office …

There are many variables to choosing the right business entity, but a good place to start is to prioritize liability issues over tax issues
Q: I’m trying to start an independent record label, and I’m also a piano accompanist. I’d like to combine both those services under one company, but I’m still deciding whether to classify my business as a sole proprietorship or a corporation. Would a corporation provide me with more tax advantages if I earn under a certain amount of income? If I’m more successful in subsequent years, would …