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Comment Deductions & Don't use a CPA (Score 1) 293

Taking lots of business-related deductions on a schedule-c supposedly makes you more likely to get audited. However, your earnings & deductions under a corporate tax return are small relative to the universe of corporate returns making an audit highly unlikely. So bottom line - if you plan on taking business deductions, go the corporate route. You can probably save enough going the s-corp route by taking some of your comp in dividends to pay for the "accountant" person doing your corporate tax return & quarterly stuff. Look for small business accountants who are not CPAs - you'll get the same work done and pay less. You really don't need a CPA when you're small. Call around and tell them your expected revenues and that you'll want them to prepare "all the quarterlies" and the corporate tax return. You can do your own personal taxes by dropping the k-1 income from the corp onto your 1040. My guess is that you could find someone to do that for about $500/yr.

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