Quote:
Originally Posted by Bradleyrj
Wes, speaking from experience. A friend and I tried this back home. (well attempted to try it).. to be able to use this as a "business" we were only going to get 2 years of non profitability. After those two years were up we had to be able to show a profit (over and above the price of cars and equipment) OR the LLC would no longer function. I'm not saying you wont go rounds and win races and coin... but there is more to it unfortunately when you try to make it a business.
With that said. I think WWR would be your best choice. or WWP, Wes Whittle Performance.
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I think it is 2 out of 5 years or 2 out of 7 years you have to show a profit, not the other way around. That really isn't that hard. You just don't write off anything that particular year or defer your expenses to the following year. Showing a profit can be $1. You depreciate your assets in a different way those particular years, etc. I don't know everything about it, but it's not my first rodeo either. That's why I have an accountant and attorney anyway. If they say it will work, I beilieve them.
I am doing it more for the liability. There are many stories of cars wrecking, hitting the other car, and one person sueing the other. Many other stories of mishaps in the pits, etc. I also do not want to personally own my car. Being self employeed, in a volatile business, I don't want to own anything myself. If you are going to come after me for anything I am going to make you work for it.
Actually when this is all said and done- my wife will own the business that owns the car. I will just be the driver. I could go on and on for all the reasons I am doing this, but it really doesn't matter.
Thanks for everyones input so far, I think I'm gonna go with WWR. Simple, but it will work.