Quick Take Here’s the tax concept that trips up almost every new LLC owner: a single-member LLC is a “disregarded entity” for federal tax purposes, which means the IRS pretends your LLC doesn’t exist when it comes time to file taxes. Your LLC gives you legal protection (it separates your personal assets from business debts … Read more
Quick Take Sales tax is money you collect from your customers and hold in trust for the state — it was never yours to begin with. That’s the single most important thing to understand about LLC sales tax, and it’s also where most business owners get into trouble. The most common mistake? Treating collected sales … Read more
Quick Take Here’s the mistake almost every new LLC owner makes: they assume that because they formed an LLC, sales tax works differently for them than it would for a sole proprietor or a corporation. It doesn’t. LLC sales tax obligations have almost nothing to do with your entity type. They’re determined by two things: … Read more
Quick Take If you’ve elected S-corp tax status, the IRS requires you to pay yourself a reasonable salary before taking any remaining profit as distributions. This isn’t optional, and it isn’t a number you get to pick out of thin air to minimize taxes — it’s a requirement tied to the actual value of the … Read more
This article is for educational purposes and does not constitute tax advice. Consult a qualified tax professional for guidance specific to your situation. Quick Take If you run your LLC out of a spare bedroom, a corner of your living room, or a converted garage, you’re probably entitled to a home office deduction — and … Read more
Quick Take Form 2553 is the IRS document that turns your LLC or corporation into an S-Corp for tax purposes — and the mistake most business owners make is filing it too early, too late, or without understanding what it actually changes. Here’s the thing nobody tells you upfront: the S-Corp election doesn’t create a … Read more
Quick Take: Your LLC’s Tax Life Depends on Smart Record-Keeping Here’s what matters most about LLC accounting: your bookkeeping system directly determines how much you’ll pay in taxes and whether you’ll survive an IRS audit. The biggest mistake? Treating your business bank account like a personal piggy bank and failing to track expenses properly from … Read more
Quarterly Taxes for LLCs: When and How to Pay Quick Take Here’s what matters most about quarterly taxes for LLCs: if your LLC makes a profit, you probably owe quarterly estimated tax payments to the IRS — and if you skip them, you’ll get hit with penalties even if you pay your full tax bill … Read more
1099-NEC Filing: Requirements for LLC Owners Quick Take The 1099-NEC filing requirements kick in when your business pays independent contractors $600 or more in a year — and failing to file them correctly can trigger IRS penalties and unwanted attention. Most LLC owners think 1099s are just “something for the accountant to handle,” but understanding … Read more
Single-Member LLC taxes: Schedule C Filing Guide Quick Take Here’s what matters most about single member LLC taxes: By default, the IRS treats your single-member LLC like it doesn’t exist for tax purposes — you’ll file Schedule C with your personal tax return, just like a sole proprietor. The biggest mistake? Assuming you’ll automatically save … Read more
