Business Launching

[Webnet]

When it comes to taxes, and the legality of business I dont' know much. Is it true that a business gets the first 3 years of "income" tax-free as long as it goes to cover costs and after that 3 year cushion taxes must ALWAYS be paid? My company is developing software and it'll be a year or so before it's completed or ready for beta. In the meantime I want to launch a web hosting service, but initially we'll make so little money that I dont' want to screwed on taxes down the road. You guys might be able to help me out, is that accurate?

[brian.moeskau]

I would suggest asking a CPA this question, not random javascript developers ;)

You might also try the Joel on Software "Business of Software" forum, as they often discuss this type of thing and there are usually many knowledgeable startup folks there.

http://discuss.joelonsoftware.com/default.asp?biz