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?
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.