Hello. I am brand new here to the forum. Seems like a lot of good discussion here though! My first question that I have is regarding a computer. I just registered an LLC not too long ago. It is going to be just an online site with no merchandise or anything. I may have another business started in the future that would involve selling products and not just an online site. My question is should I buy a PC for each business or am I okay with just using my normal home PC for both? I am in the future looking to maybe get a new laptop. Would it be wise to use the LLC to buy it so that way I could deduct it when I file my taxes? Hopefully this isn't a dumb question and thanks in advance!
If the home PC is powerful enough & only used by yourself then I see no point in investing in a new PC soon. Just keep it safe [virus free] and may be have a backup-system in place for important work related files.
I'd say go with a Laptop you can use it literally anywhere you won't need a PC for work because you won't require high amounts of power.
The issue of whether you need a separate computer shouldn't really turn on the tax consequences, since buying a second computer that you don't otherwise need just so you can get a tax deduction still leaves you out of pocket for the difference between the cost and the tax savings. As far as whether you buy the computer yourself or the LLC buys it, it doesn't really matter (assuming that you have a single member LLC which is treated as a disregarded entity for tax purposes). What DOES matter, is how the computer is used. If the computer is used more than 50% for business, you can deduct the business use portion in the year you buy the computer under section 179 of the Internal Revenue Code. If it is used 50% or less for business, you can still deduct the business use portion, but the deduction must be taken as depreciation over the life of the computer using the Alternative Depreciation System (ADS) (straight line method). The rules are different (more favorable to you) if you use the computer for business in a part of your home that meets the IRS' definition of a "qualifying office." For more information check out IRS Publication 587, Business Use of Your Home.