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My wife has done a little freelance web design for friends and family, and is thinking about taking clients and doing work in her spare time, but we're not sure which is the best way to start.

From what I've read, it sounds like Sole Proprietorships are the simplest to start up. My main questions is this: Will we have any problem deducting start-up costs (software, mostly) if she produces no income from her business this year?
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