My wife wants to start a home based business selling party favors on the internet and through mail-order but she does not know what business structure would be best. Should she be a sole proprietor? or should I become a partner with her to make a partnership (since i’m sure i’ll end up gluing or wrapping something)? or is there another choice? What are the tax benefits for each choice? There will be no paid employees but herself. She will be located in New York City. I work full time at my own job. We currently file taxes jointly.
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I amm in NYS – started a business a few years back. It should be sole proprietorship. She can register for a tax ID # but doesn’t have to. Register the business name and use her social security number. The state and feds don’t mind a loss shown in April for the first year or two, but after that it must show a profit or else they will consider it a hobby and not allow for the deductions. This is direct from my accountant. Keep it simple, advertise in local publications – Pennysaver is a good place as they usually post all ads on their web site as well. Branch out into Westchester – lots of opportunity there as well.
Acetone works great to remove glue!! Have fun and good luck!
Working together with be a strong point for your company. If one can not find something that needs to be found or done the other can do. But always remember —- THINK OUTSIDE THE BOX
and you both with build a wonderful company together