Hi there,
I bought the material and took care of a lot of expenses (>20k) for my 25 year old son to open his own business. He created the products and presented them in art exhibitions which were received well but did not go beyond that. Also, though he tried, he could not start his business yet as he hasn't found any buyers yet. We both need to figure out how to go about with business as we don't have much experience in this matter. We heard that we should find an investor, spending from my salary won't scale for long. Regarding tax matters:
1. Can we open a LLC on both our names and claim 50% each of tax deductions for the material we bought and all the other expenses? Or should I claim 50% of those tax deductions on my name as only I paid for it?
2. As it is already October, can I still submit LLC and will I be allowed to take tax deductions for the expenses so far before submitting LLC?
3. Even though he did not make any profit from this business, can we still submit LLC?
I would appreciate any other information regarding this matter. Thank you so much!
