Just filed my first LLC return (single-member, schedule C) with zero help. I spent like 40 hours reading IRS pubs and watching YouTube. I think I got it right but my stomach is in knots. I used TurboTax Self-Employed and triple-checked everything. Anyone else here do their own LLC taxes? Did you survive an audit? Am I insane?
DIY Taxes
I handled my first year of LLC taxes without an accountant
40 hours? rookie numbers. i spent a whole weekend just on the depreciation schedule for a $300 desk chair. you're probably fine
Schedule C for a single-member LLC is honestly not that hard unless you have inventory or employees. Did you remember to deduct the employer half of SE tax? A lot of people miss that.
I did my own for three years. Year four I got a CP2000 letter because I forgot to report a 1099-INT from my business bank account. Six bucks of interest. Six. The IRS spent more on postage than they collected. So yeah, double check every random form that shows up.
Oh god. I did get a 1099-INT for like $12 from my business savings. I reported it but onlly because I remembered at the last second. That CP2000 story is exactly the kind of thing that keeps me up at night.
Honestly the bigger risk than an audit is just leaving money on the table. Home office, mileage, software subscriptions, that dumb little $9/Month app you forgot about. Most small LLCs overpay because they don't track expenses. The audit boogeyman is overblown for normal people.
Not to be that person but TurboTax Self-Employed is fine for a basic schedule C. It's not fine if you're doing anything creative with basis or distributions. Which for a single member is basically nothing. So you're good. Next year get a separate business checking account if you don't have one already. Makes the bookkeeping way less awful.
separate checking account changed my life. well, changed my Sundays. same thing basically.
Not an accountant, just played one on a forum once. But the number of people who mix personal and business expenses in year one and then panic in year two is wild. Keep receipts. Use a folder. Stop using your personal debit card for supplies. That's my whole sermon.