Should I declare a sole protrietership early to "write off" workstation expenses?

[Buzz]

So I'm declaring a sole protrietership small business to handle income from apps/software/videogames in the future and as I'm getting around to ordering a workstation computer, periferals, desk, office chair...etc it occurs to me that if I jump through the hoops and get my business legally established I could write off these items as business expenses.

Anyone see a reason not to do this?

Are there unseen costs to simply having a business declared?(aside from the initial registrations and such)



I did a bit of research and everything seems in order...

-All items despite being in a home office are being used exclusively for software/content creation or related research. So the idea of an audit doesn't really worry me.

-There are practically no costs that accumulate for simply having a home office workstation ready to go.

-Given the nature of what I work with the cost of the computer ($2,500ish USD) is easily justified and most would agree is actually on the low price range for a content creation workstation.



Any thoughts? Good Idea, bad Idea, be careful of X, most don't think of X?

I'm seriously considering this but I figure I'd better run it by those who know before doing so, thanks in advance guys.

[Kyle Johnston]

A sole proprietorship seems beneficial for what you are doing. Realize you will have to establish paperwork for tax purposes as well. So, you will be able to write those things you spoke of off (as long as they are truly business only expenses as you say) and will pay taxes on your business income as well. I am unsure exactly what your software does but be sure there is not a lot of liability issue associated with it. If there is a good bit of liability, consider establishing an LLC. I hope this helps and good luck!