setting up an S corp or LLC to compete?


 

jeff davidson

TVWBB Super Fan
I posted this thought in another thread but I think it deserves a thread of its own. Has anyone setup an S corp or LLC to compete in events? This would allow one to deduct an awful lot of stuff including smoker, trailer, meat, gas, spices, wood, etc. Also, if you wanted to vend at an event it would protect you against lawsuits.
 
I looked into it some time ago for several reasons. One of which was the write-off possibilities. Another was so that I could get access to Restaraunt Depot.

After a fair amount of studying I decided that it wasn't worth it. I don't vend and that's the single biggest reason for doing it. The cost of equipment doesn't have to be that much so writing it off doesn't make the whole business thing worth it.

I've also since learned to check with the contest promoter and see who the benfactor is for the competition. If it's someone like Habitat for Humanity, a local Humane Society, Women's Home, etc. then chances are very good that they are 501(c)3 non-profit. If that's true then your entrance fee is considered a donation and can be tax deducted. I've also asked if that's true and I'm participating in the event then can I be considered a volunteer and deduct my fuel bill? Haven't gotten a reply on that one yet.

All of these things I can do without a business license.

Russ
 
Do you think you are going to make money competing?

If you are worried about a 1099, save your receipts and record your mileage.

But doing that may make you sick after a few contests.

I assure you unless you win GC 3 out of 4 contests, your expenses will more than cover your 1099's.
 

 

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