To the original poster: Looks like we’ve shined a light on a lot of different options for you to run your new business. I would recommend speaking with an accountant who deals with small businesses in the State in which you’ll be operating.
IAB -Sorry, didn’t mean to cut short on our posts, I was having a 5 Monday week - as was mentioned above, the IRS has thresholds in place for every category of filing and a good accountant knows what those thresholds are and how to make sure you’re running your business correctly, that’s why I defer to them - they know what they’re doing and it can differ State to State.
Scott Bennett - the Corporation rules really aren’t burdensome in comparison to the tax advantages for an S Corp. I like to think of our business structure from a long-game standpoint. We have depreciating assets, inventory write-offs for our internally developed products, R&D, travel, maintenance expenses, studio costs, etc that all combine to give us a very good position against our income. In addition, we recently set up a Corporate retirement account (in addition to our roll over IRAs and Roth IRAs) that allows us to contribute with company-matching to maximize our future gains. All these things roll into a package that our accountant handles so that we don’t have to worry about it…and there’s no way I could stay on top of all the ever changing accounting laws to make the most of our revenue situation, so it has been more than worth the annual bill for his expertise.