CompuServe Messages

I think you can loan a business venture money in a Sch. C activity and claim it. I also think you can claim all the interest as "investment interest expense" This would be a tax advantage if you borrowed on your charge cards or other to obtain the money. Also, you have to apply the "at risk limitation" rule. If you loaned the business venture money from your own stash then I doubt if there is any advantage. My company is an S corp which does have certain advantages over the sole proprietor business. One of the problems of conducting business as a sole proprietor is that you must contract as yourself. In most states it's not legal to contract for work as a business unless you incorporate. There are many others but in our line of work the need to contract as a business is a definite advantage. Of course there are many other advantages as well. In 1985 the cost to form a corporation was, I think less than $150. And most of that went to my atty. Today, I would do the paperwork and search myself. Save about a hundred bucks or more. Hey, good luck on landing that account. Don't give away the store. I found that you work harder on the nickel- dime stuff than a well budgeted project. Thanks to the advice of Paul Lind and others I have raised my rates considerable and I am motivated to to better quality work and I don't worry about the check book balance so much anymore.