Ok so I have been painting houses for myself with no employees, and I have been flipping a few classic cars and selling parts on ebay. My ebay sales are really beginning to grow, and I am beginning to get consistent house painting work. The last few years that I have been house painting I have just filed as a sole proprietor, calculating my profit vs deductions. I want to set up these two streams of income professionally, making the best decisions for the long term. Someone told me to set up a corporation, and to set up individual businesses under this corporation. Is that smart? and why? If not should I set up an LLC for each? House painting and my ebay/Car sales? One last thing I have been continually reinvesting my ebay sales income, purchasing more and more inventory. Is this inventory deductible as business expense? I assumed that it would be but I have read a few things saying that it is not.

Thanks for any and all help, I really need it. I am doing business in the state of South Carolina.

William