For starting a business while I-485..

[caryguy]

We(I and my wife) are on I-485 pending and have EAD.

1)I heard it is OK to start a business(Home-based Corporation) . Can we use anyone(me or my wife) as incorporator?
2)For Corporation tax, which kind of papers should we report at the end of the year to IRS?
2) Even if we can not make a profit at the first year, is it OK?

Thank you guys in advance.

[Abdenour Achab]

Hi CaryGuy,

The CPA option suggested by **** is the safest
one. The cheaper one is to use TurboTax Business
(not to confuse with TurboTax Home and Business),
that will guide you through their interview.

As for profits, you can either pay a CPA or listen to me for free (and get what you pay for): it has to be your intention to eventually generate a profit, and you have to keep records to prove, in case of an audit when you are operating at a loss, that you are running it as a business, not a hobby. I, for example, keep records of the volume of phone calls I make, the classes I take related to my business, the receipts for the books I buy, etc. The more records you have, the better.

Also, if you have 3 straight years of loss, the chances you get an audit are higher. Many people mistaken that to mean that you have to generate a profit by the third year. That's a common misconception. Many businesses, including, I believe, Amazon.com, had operated at a loss their first 3 years.