starting a freelance business

Question

2346 viewsJuly 30, 2018Business Tax

0

Anonymous Posted July 27, 2018

Greetings,

I saw one of your youtube videos and I have a question about business structure. I want to start a Freelance business doing digital marketing and I want to do Uber on the side. Being a newcomer with no credit history, is it better for me to start as a Sole proprietor or as a Corporate, which one is better for tax purposes and for leasing a car if possible as a new business, or should I buy a car with cash.
I hope you can help me with this and can you can tell me what will it cost to set up the business.

Thanks.

1 Answer

score 0 · Answer 1 · 2018-07-30T16:47:51+00:00

Hi,

I suggest that you start as a sole proprietor. It is less expensive than incorporating in terms of setup costs, and ongoing tax & accounting compliance. If your business becomes successful, I suggest you incorporate, because you will save tax and the savings will more than offset the costs.

To free up cash-flow, consider leasing a vehicle rather than buying. Lease payments are deductible so long as the monthly lease amount is less than $800 / month plus tax.

starting a freelance business

1 Answer

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