A friend and I are planning on going into business together in California. We plan to purchase $20k worth of parts to build a computer to rent out on vast.ai. We project that our revenue will be $2500 / month.
Our goal is to reduce our tax burden by writing off the $20k purchases, electricity costs, and any future purchases. The problem is both of us plan on taking a standard deduction, as we have very few other items to write off in our personal lives.
The current idea is to form a General Partnership, which we've been told will allow us to deduct the expenses from the business, and pass only the profits to us personally.
Is this the correct way to do this? Will this help us avoid being double-taxed? Are we going about this completely the wrong way? 😅