The misconception is that every mile driven is deductible, which is not the case. The only miles that are deductible are miles driven for the sole purpose of conducting business. The IRS requires that logs be maintained showing date, miles driven, purpose of trip, odometer reading. The task may seem to tedious to bother with, however, with a deduction rate of $.565 per mile (2013) the tax savings can be tremendous. There are smart phone apps available to help with the task, just search "mileage log" in your market place.
I would recommend legal counsel if you have a large amount of assets that need protecting, but here are the basics. First of all, form a corporation. This creates a separate entity. (Think of it like a completely different person.) Forming a corporation is a fairly simple process, it is the maintaining of the corporation that can get complicated. Many people form a corporation, than stop. They never go to the next step, which is absolutely critical in protecting your personal assets. Depending on your corporate structure, (LLC, S-Corp, C-Corp) the steps will vary. Write an operating agreement or member agreement
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