Hello StartUp Nation!
I am extremely happy that I discovered this site!
My friend and I are starting up a dive business in a high tourist and local traffic dive area.
- Teach dive classes from a remodeled garage
- Two options: His garage or my garage
Initial cash-flow will be light due to covering the costs of remodeling and buying rental equipment for students and divers. Advertisement will be mostly by word-of-mouth, but experience has shown that this brings the happiest customers.
Our consistent pricing schema will be welcomed by local customers who are tired of the "special price for a special friend" trend that has dominated the market.
Questions to Start-Up Nation
I am uncertain on how we should execute the legalities of our business.
I know that a Corporation can offer liability shielding, which would be critical if something negative happened, but the costs to maintain that seem too large for our operation.
LLC's seem the right way to go but I'm not certain if that really offers us any benefits other than legal agreements between each other.
If there are any business tax experts out there I would be interested in hearing the advantages/disadvantages to the above.
I heard that in some home businesses, the owners can write-off a lot of the costs of the onsite property. Simply translated, if we can show that we use 30% of the house to run the business (garage) then we can write-off 30% of the cost of the house.
How accurate is this interpretation of the tax law?
Thank you for your time and I look forward to hearing your advice.