6.    “I will operate as a schedule C and start at the beginning of the year and incorporate or form an LLC”
This is not your case as a client but you may know several business associates or friends that share this belief. The problems with that are: According to the IRS there is a $300 BILLION tax gap per year, meaning the IRS has $300 BILLION of uncollected taxes. They have identified that 70% of that comes from small business owners and of that, sole proprietorships are the biggest target. Why? Sole proprietorships are more likely to exaggerate their expenses. Result: schedule Cs are more likely to be audited. Another problem; unlimited personal liability, the wrong marketing message to send to your prospects all of which will cost you 5-10x more the fee to establish the proper foundation in your business.