Should I incorporate?

I really appreciate John's question:

I'm debating whether to operate as a DBA or an LLC.  I feel like the former should meet my needs in the short term (claiming expenses on income tax, being able to accept checks etc.) and the latter offers more separation between my business and personal finances (and can keep people from suing me for everything I own, which is important!). But I generally have the business sense of a rutabaga, so help!!!

Dear Rutabaga, 

Don't do an LLC.  

From what I understand, it doesn't protect you all that much and it's expensive.  I started the process here once.  The filing is expensive and California had a minimum of $800 a year to maintain the LLC.  I assume other states do the same sort of thing.  I bailed on that one.  

Just get insurance.  This is what I use, they are attentive and have everything covered.  I'm sure if you need additional insurance, they would be happy to take your money.  http://www.specialtyinsuranceagency.com/

I've never heard of anyone being sued.  I've never even known anyone that had to use their insurance.  But of course, it's good to have.

I've used a DBA for as long as I've been a clown.  If you don't know what a DBA is;  It stands for Don't Buy Aspertame.  

Actually, Doing Business As.  On my checks it says David Magidson DBA Boswick the Clown.  I originally wanted a dba so I could always maintain character.  "just make the check to Boswick the Clown..."  

When you file, you just do a schedule C like all businesses.  It's not that hard, you just divide up expenses.  Props, office expense, costume, advertising, fake poop.  My small tricks, I have a business checking and a business credit card.  At the end of the year, everything on there is a tax deduction.  Credit cards are pretty good at saying where you used the card.  Of course only use the credit card for business expenses, then you just put everything into a category.  

Unless you own a home etc, I think you can probably do your own taxes.  I am married, have a house so I use an accountant.  Plus I hate doing taxes.  

Be careful with mileage, find out the rules.  Don't ask friends, you will always get the wrong answer, just go to the irs home page and dig through.  I have a couple of friends that use a small office or storage unit to store props.  They count their mileage from there.  If you use your house as your home base, you can't write off the mileage to your first gig of the day, it's considered normal commuting.  

Also, you will be asked to charity work and EVERYONE will say you can write this off.  Nope.  You can write off mileage, balloons you use but that's it.  You can't write off services.  The point is, you can say you charge $50,000 per show and write all that off.  Do charity but just because it's a good thing to do.