Setting up home drafting business?

Say I wanted to setup a home drafting business

And I need to buy the equip....PC, plotters, etc

Should I get the business legal things setup first and
THEN buy the equip?

Or can I buy the equip and deduct it AFTER setting up
legal business?

 

These questions depend on the laws in your area, clearly. Where I am, the
first thing to get is a client.

 

I live in Canada (west coast). And I started up my Company last November (I'm
the sole person/owner). My local Accountant (the guy who does my personal
Taxes and who will be doing my Business Taxes) said that he'll be able to
deduct stuff I purchased prior to my Company. Things like camera, etc.

So the bottom line is that you should FIRST find an accountant for your
Business, and ask them.

Regards,

BruceF

 

LOL! details, details...

 

Understood..... probably mostly elect schematics in
this area.... but some mech design

A little background on me:

I've been in mech and electrical drafting and design
for over ten years now at company I work with

I use Autdesk Inventor for mechanical design which is a
3D application

Use plain AutoCAD for 2D design such as electrical
schematics.

having said that I like your idea of using Intellicad
over Autocad for the 2D stuff

But no real free cheap substitute on the 3D mechanical
software such as an Inventor "clone"

Still...... I get your point abt being careful to not
go out and buy "stuff"until you get the sales in.
Point well taken there!

 

You can do it either way. When you set up the business you are the
owner or the part owner, right? Then if you invest in the company by
pouring money or equipment into it, you can deduct the investment
against the profits of the company (which profits you share among the
owners) . . . although you're likely to have to depreciate it over
several years. If you buy the equipment after you set up the company
then you've done the very same thing.

Talk to a tax accountant. They can set you straight.

www.h2omarkdesign.com
Mark 'Sporky' Stapleton

 

Will do!

Have an appointment this week