TheReff
Rod Griffin
- Joined
- May 15, 2011
- Messages
- 6,567
- Reaction score
- 612
Of course all sales generate income but everything spent comes out of the bottom line. All advertising done locally like doing something you see a group do for the local minor league baseball team. Same with any ads taken out in newspapers and/or social media and Google. There is a happy medium a small business has to balance. Doing things just because it is tax deductible is not a good reason to spend money.So we have a professional services firm. We have some 1099 contractors. Every hour they work generates net income. I wouldn't consider their pay "coming out of our pocket" but adding to the bottom line.
Sole proprietorship works better in a lot of ways. Depends on one’s situation. Plus that is why one has plenty of business insurance, errors & omissions, plus professional liability insurance. (Not like a surgeon getting sued for millions for medical malpractice and needing an llc)