Outsourcing Ukraine

Expenditure per company with no income?

Hello all, I think to create a Web company as a sole proprietor so you can the expense of development cost. However, I am not sure if this is possible if the company is not waiting to make money of 1.5 years. I do not know if I can bear the cost of development if I outsource this task to a foreign company in Ukraine. The reason I chose the sole owner of LLC because I want to avoid all the costs and paperwork before the company gets on the track. Also, I read somewhere that you can pass my personal income from my day job. Is this true and is a good idea? Please help! for this is right, spending it to outsource work abroad? An acknowledgment is enough to prove? I can also easily fate LLC after the company takes off?

As sole owner of state spending and business income on Web on your tax return Schedule C. And business losses could be offset your W-2 income. You can choose to capitalize costs or cost changes and depreciation. In addition, you be aware of the "loss rules hobby. 1.5 years to a profit is fine with the IRS, it is only if you have losses year after year after year …. you get the idea, which would a problem. Then, the IRS could declare that the company is just a hobby and it would limit their losses on that income. What the IRS said that a company is that if you get a profit of 3 to 5 consecutive years which is a business not a hobby, and losses to be authorized. And, of course, the IRS could never compete with companies, even if you have continuing losses.