Sure, the usual and customary three years to successfully launch seems fair and reasonable. However, the global economic crisis is neither fair nor reasonable. Anyone who willingly spends their life savings to create products and services ought to be given a usual and customary deeper dive.
Typically, any entreprenuerial small business startup has three years to invest money (time, energy, etc) into creating a profitable business plan. And in this usual and customary time frame, startup expenses are tax deductable. After that, the IRS will ask a simple, and appropriate question: Is this a hobby or a business?
At the end of the day, a business needs to be profitable. Duh, right. A blinding flash of the obvious. There is the obvious need for capital investment and payroll. And what makes America great is our ability to overcome adversity against all odds. These are extraordinary economic times. Dear IRS, please have faith in Mid Life Celebration, LLC. Thank you.
Dear IRS, thank you for believing in the spirit of America’s desire to see small business startups succeed. Most boot-strapped startups never make it to profitability. Why? Because of the tremendous challenges – money, time, energy, commitment, ingenuity.
PS. Mid Life Celebration, LLC refuses to quit. Please have faith in it’s vision and my determination.