I spent like 20 minutes on the LLC paperwork. 3 months later I'm staring at a 1099 and wondering if I owe self-employment tax on money I already spent on supplies. The formation was easy. The taxes are a maze.
LLC Taxes
The first tax season after forming my llc was more confusing than the formation itself
lol same. I formed mine in a weekend and then spent a full week googling 'do i pay myself a salary' like it was a life or death question.
Wait until you find out you might have to file a separate state retrun just for the privilege of existing.
don't remind me. I got a letter from the state saying I owed $0 but they still wanted the form. took me an hour to figure out it wasn't a scam.
Did you ellect S-corp or are you default? That changes everything.
Default. Someone told me S-corp was better but then I saw the payroll requirement and noped out.
Probably smart. I ran the numbers once and the extra accounting fees ate most of the savings for my income level.
Honestly, just get a CPA. I tried to DIY my first year and ended up amending my return twice.
That's what I did after my first filing. Best $600 I ever spent.
counterpoint: my CPA charged me $900 and then asked me what a 'Schedule C' was. not kidding.
That's terrifying.
Yeah but the real gotcha is quarterly estimated taxes. Nobody told me about those and I got hit with a penalty. That was a fun surprise.
I just found out about the QBI deduction like 15 minutes ago. Why is this stuff not in the formation packet?
Because the formation packet is just the bouncer letting you in the door. The tax code is the entire club and nobody gave you a map.
Hire a pro. Save yourself the headache. My guy has saved me more than he charges.
or marry an accountant. that's what I did. way cheaper in the long run.