I used to joke that if you go to the movies or restaurants etc. you could open pass-through tax LLCs (which are “disregarded entities” at the IRS) and write those off as a business expense, as long as you had a website as a food or movie critic / reviewer, and even had a way to subscribe for some paid memberships (eg Patreon) and also advertising with affiliate sales (eg Amazon) for recipes, movie rentals etc.

You know, running a business kind of like that guy who writes about inside Apple news very rarely but effectively (what’s his name, Gruber? Daring Fireball?)

The business doesn’t actually have to make money in the first few years, as long as you are making bona-fide attempts to grow it. No one requires you to watch every movie or eat every burrito. But who is the government to say you’re not trying to run a business as a food or movie critic?

Much of your personal lifestyle could then be deducted as a business expense on your schedule C, being “necessary and ordinary” for your various LLCs. Perhaps even your travel expenses if you are a travel blogger staying at hotels etc.

But maybe it’s not a joke. Any lawyers or accountants on HN see any problems with this? Again, I’m talking about doing the minimum to make this an actual business — it may become profitable through the monetization but even if it isn’t, that’s 30% additional you’re saving on what would otherwise be your personal entertainment expenses!

The main issue I see is that if your LLC has debts that it defaults on, a court might see you as “commingling” personal funds with the business, even if you keep the accounts separate, and pierce the corporate veil. But, this is a separate issue of limiting liability for debts, which your LLC doesn’t have to even take on. Even if that were the case, from a tax point of view the question is only whether the expenses are necessary for the business, and ordinary, both of which they are.