@jakeamarkie wrote:
Hi,
To clarify, the equipment is a drone. From July 2019 to December 2019 I was using it for non commercial use, but I was using the equipment to get familiar with it and practice, as this is needed in order to use it efficiently. From December 2019 until today, I have been using it for commercial use as a freelancer.
I am also now quite confused. If you have been using the equipment from December 2019 until today as a "freelancer", what business are you thinking of starting? You are already in business. Changing the form of the business (from an unincorporated sole proprietorship to an LLC, for example) or formally registering the business with the state (if such is required under state law) is not the trigger for reporting the income and expenses. You report income and expenses whenever you are actively pursuing the business, even if you have not completed some kind of registration or licensing step under state law.
