vTAXES:
If they are not already, taxes will soon become a problem for you.

I am not an attorney but I believe my advice is pertinent and accurate.

*do not consult your neighbor, friend, "avowed expert", myself or anyone else on taxes regardless of how successful those people at pier to be.

*your situation is NOT the same as theirs. Therefore their advice is not likely to be applicable to you.
*some people will tell you they write off a portion of their house. Under some conditions some people may legally do that. You may or may not be able to do that legally.
*Find a good tax accountants and get ALL of your advice from that person.

*you should find out at what point you will have to pay taxes quarterly.

I strongly recommend you keep receipts for everything, regardless of how little it is, that pertains to your business.
This includes restaurant meals where you are trying to interest your companions in your product or business. Also keep them for purchases such as Staples, paper, rubber stamps, postage stamps, pens, pencils, paper clips, computer CDs or floppies, possibly computer maintenance and everything else that is applicable to your business.

I strongly suggest you open a separate bank account and deposit 40% of every check you receive from the company in this account. That way you will have the money available when tax time comes. Hopefully that will turn out to be too much because of your business deductions. So what? Deduct the appropriate amount less next year but have enough to cover this year.
Bob