Posts by Eric Bennett4

So, I’ve decided to take the plunge and start my own small business, and I find myself facing a few hurdles. I appreciate any insight or guidance you all can offer before I dive in. To give you some context: I am planning to act as the sole representative for an Italian firm operating within the West Coast region. They aren't interested in establishing a formal US entity or hiring a full staff until they see how the market responds, which means, for the time being, I will be the only person on the payroll. This leaves me with several pressing dilemmas:
1) Is it legally viable for a sole proprietorship to function as a commercial agency? Specifically, I am looking into sales representation. If we draft a formal representation agreement to ensure everything is legally sound, would that suffice?
2) There is the issue of transportation. Until I can secure a company vehicle, I intend to use my mother’s car. What is the standard procedure for this, what are the typical mileage reimbursement rates, and how does the IRS view these deductions?
3) Regarding office space: I plan to use a portion of my family’s apartment—which is under my father's name—as my workspace until I can lease a proper commercial unit. What is the protocol here, how is the tax implication handled, and am I even permitted to sign a lease agreement if the property is part of a multi-family residential building that isn't zoned for separate commercial units?

So, I’ve decided to take the plunge and launch my own small business, and I find myself facing several questions. I appreciate everyone’s willingness to help me out in advance, but before I dive into the specifics, let me lay out the situation: I am essentially going to act as the sole representative for an Italian firm operating within the US market. They aren't interested in establishing a domestic corporation or hiring a full staff just yet because they want to test the waters first. Consequently, I will be the only person on the payroll. This leaves me with a few dilemmas that I need to resolve:
1) Is it legally viable for a sole proprietorship to function as a commercial agency? Specifically, I am looking into sales representation. We would, of course, have a formal representation agreement in place to ensure everything is legally airtight.
2) There is the issue of transportation. Until I can secure a company vehicle, I plan on using my family car, which is currently registered in my mother's name. What is the standard procedure for this, what are the typical mileage reimbursement rates, and how does the IRS view these expenses from a tax perspective?
3) Regarding office space: I intend to use a portion of my family apartment—which is under my father's name—as my workspace until I can lease a dedicated commercial unit. What is the proper protocol here, how is this handled for tax purposes, and is it even possible to sign a lease agreement if the property is part of a multi-family residential building that isn't zoned for separate commercial units?