I figure I am about to be a CPA and will be taking corporate tax classes and law classes, etc. I was thinking of a way to make it personal and thus, more interesting and have been toying with the idea of creating a corporation with which to play with.
My long term goal is to run my own profitable business. It will be primarily a Phase I (I do the work) business at first focusing on accounting and tax, but I want to have a separate branch focusing on aviation matters. I’d love to figure out a way to make a material portion of my income through aviation related affairs, perhaps specializing in airline pilot tax prep, or structuring aircraft leases, or acting as an airplane broker, etc.
Clearly, the corporation will operate with very minimal income for a while. The primary purpose in the short term is to give me a “baby”, with which to learn about babies. It would be sort of like going to auto mechanic class. Might as well buy a car to apply your knowledge to, eh?
Anyway, its all in the early stages. I have decided on a name, but will keep it private until the state approves it and all the paperwork is filed.
I am excited about it. I am thinking that since it is an accounting business and the CPA is continuing education to increase my marketability in my existing profession, it should be entirely deductible within the corporation. I believe that losses that flow through are limited to basis in the corporation. In other words, I do not believe that I can just form the entity, then just deduct the tuition and be done with it. In all likelihood, I will have to make a significant personal cash contribution to the business in order to establish basis, which will then allow me to take the losses and benefit to a greater degree than I would with the lifetime learning credit.
Anyway, I admit, I am basically clueless on all this. As the title says, it is an experiment. I’ll learn more about it as I take these classes and work towards this CPA. In time, I hope to build the business up to something pretty cool.