check with tax professionals who do this for a living. you may go to your local tax agent who do book keeping also. Those with more than 15 years of experience will tell you the right answer...Those with less than 5 years of experience may not know all the details....With small business, you can include variety of expenses that are allowed by IRS...You can do small biz as sole, LLC, Corporations. I'm not too familiar with different pros/cons with each of these but in general, the more money you will make through your small business, better to switch from sole to LLC or C/S corps. As a sole, (with your SSN) you are liable for any lawsuits etc if something happens to others while doing biz with you and they decide to sue you. With other structures, your assets are separated from business assets...etc...These are basics...Go to youtube ...and search for difference between all these and see for yourself where your business fits. Usually people start as Sole, and go from there....