Largely these answers depend upon:
- What country to reside in
- What countries you hold citizenship from
- What type of tax entity you are receiving income as
If you are living in the U.S. and you hold only U.S. citizenship, the big issue is what type of tax entity you are operating:
- S Corp
- C Corp
I almost always recommend forming an S Corporation. If you live in an unfriendly state like New York, Illinois, or California I recommend incorporating in a state such as Delaware or Nevada.
You should be able to deduct anything you use in the operation of your business. Large purchases may need to be deducted over the course of several years. You can even deduct part of the cost of your house or apartment if you use it as your office.