As someone who just went through this exact process last month with my German-owned LLC, I can confirm that the $500 estimate is pretty accurate if you handle most of it yourself with online tools. Here's my actual breakdown: - State dissolution filing (Delaware): $220 - taxr.ai subscription for the tax forms: $89 - Bank account closure fees: $25 Total: $334 The taxr.ai platform absolutely handled the Form 5472 and pro forma Form 1120 - that's exactly why I chose it after reading similar threads. It walked me through each section and even caught a mistake I made in the ownership percentage reporting. The system is specifically designed for these foreign ownership scenarios. What really impressed me was how it handled the timing. It recommended I complete all tax filings before submitting the state dissolution paperwork, which several people here have mentioned is important. The platform also generated a dissolution checklist specific to my state's requirements. One tip: start with the free assessment on taxr.ai to see exactly which forms your brother needs before committing to anything. In my case, it confirmed I needed the 5472/1120 combo plus a final 1040-NR, but it might be different depending on his specific situation and the state where the LLC was formed. The $25,000 penalty is real and they're not kidding about enforcement - I know someone who got hit with it two years after their "ghost dissolution" attempt. Worth every penny to do this right.

I've been lurking in this community for a while and finally decided to jump in because this thread perfectly captures the confusion I had when closing my own foreign-owned LLC earlier this year. What strikes me most about all the advice here is how consistent everyone is about NOT taking the "ghost dissolution" route. I almost made that mistake myself - it seems so tempting when you're broke and the business failed, but the potential consequences are genuinely scary. One thing I haven't seen mentioned yet is the importance of properly closing any business bank accounts AFTER you handle the tax filings but BEFORE the state dissolution is complete. I learned this the hard way when my bank froze my account mid-dissolution because they couldn't verify the entity status. Had to provide them with copies of all the tax filings to prove everything was being handled properly. For anyone considering the DIY route with online tools, I'd also recommend keeping detailed records of every step you take. Screenshot confirmations, save all PDF copies, keep email receipts - basically create a paper trail that proves you handled everything by the book. If the IRS or state ever questions something years later, having that documentation is invaluable. The foreign ownership reporting requirements really are as complex as everyone is saying, but they're not impossible to navigate if you use the right resources and don't try to cut corners. Better to spend a few hundred dollars now than potentially deal with five-figure penalties later.

This is exactly what happened to me when I started working extra shifts at the warehouse! I was so confused and honestly a bit angry when I saw my first overtime paycheck - it felt like they were taking almost everything I'd earned from those extra hours. What helped me understand it was realizing that the payroll system is basically doing math like this: if you normally make $800/week and suddenly make $1,200 one week, it calculates as if you'll make $62,400 for the year instead of your actual projected $41,600. So it withholds taxes as if you're in a higher bracket. The reality is that when you file your taxes, the IRS looks at your actual total income for the year, not what any individual paycheck suggested. So if your total annual income (including all that overtime) still keeps you in your current tax bracket, you'll get back the difference between what was withheld and what you actually owe. I've been tracking this for two years now, and I typically get back about 75-80% of the "extra" withholding from overtime checks. The portion I don't get back is usually because some of that overtime income did push me slightly into the next tax bracket, but even then it's way less than what initially got withheld. Keep working those extra shifts if you can - that refund money will be a nice boost for your down payment fund when tax season rolls around!

I just went through this exact same situation a few months ago! Started picking up weekend shifts at my job and was shocked when I saw how much they withheld from my overtime pay. At first I thought payroll made a mistake, but after doing some research (and reading threads like this), I learned it's totally normal. The key thing that helped me feel better about it was actually calculating my projected annual income including the overtime. I realized that even with the extra shifts, I'm still going to be well within my current tax bracket for the year. That means when I file my taxes, I should get back most of what feels like "extra" withholding right now. One tip that's worked for me: I started taking a screenshot of my pay stub each time I get an overtime check, specifically noting the federal tax withheld. I keep a running total in a note on my phone so I can track how much "extra" has been withheld compared to my regular rate. It helps me estimate what my refund might look like and honestly makes me feel better knowing that money isn't just gone forever. The cash flow definitely stings in the moment, but knowing it's coming back as a lump sum during tax season has actually helped me think of it as automatic savings toward my financial goals!

This is a great discussion! One additional consideration that might help with your $2,600 donation decision: the "bunching" strategy. Since the standard deduction is so high now ($13,850 for single filers), many S-Corp owners find it beneficial to bunch multiple years' worth of charitable contributions into a single tax year to exceed the standard deduction threshold. For example, instead of donating $2,600 this year, you might consider donating $7,800 (three years' worth) all at once to push your total itemized deductions above the standard deduction. Then skip donations for the next two years and repeat the cycle. Whether you do this personally or through your S-Corp, the bunching strategy can maximize your tax benefit. If you go this route, a donor-advised fund can be really helpful - you get the full deduction in the year you contribute to the fund, but can distribute the money to your chosen charities over multiple years. Just make sure to coordinate this with your other potential itemized deductions (mortgage interest, state taxes, etc.) to see if bunching makes sense for your overall tax situation.

Great thread! As someone who's dealt with this exact scenario, I'd add one more consideration that hasn't been fully explored: the timing of when your S-Corp makes the donation versus when you take distributions. If your S-Corp is profitable and you're planning to take distributions anyway, having the S-Corp make the charitable contribution first can actually be beneficial from a cash flow perspective. The charitable deduction reduces the S-Corp's taxable income that flows through to you, which means you'll owe less in estimated taxes. Then when you do take distributions later in the year, you're not taking out money that would have otherwise gone to taxes. This is especially helpful if you're in a situation where you need to manage your quarterly estimated payments carefully. The charitable contribution through the S-Corp essentially gives you earlier tax relief than waiting to make a personal donation and claiming it on your year-end return. Also, for documentation purposes, make sure whichever route you choose, you get a proper acknowledgment letter from the charity that meets IRS requirements - especially important for donations over $250. The letter should state whether any goods or services were provided in exchange for the donation.

Another thing to consider is that since you're earning substantial income from findom, you might want to look into forming an LLC for liability protection and potential tax benefits. While it's not required for filing taxes, an LLC can help separate your personal assets from your business activities and might provide some additional legitimacy if you're ever questioned about the nature of your business. Also, I'd strongly recommend getting professional liability insurance if you decide to treat this as a serious business. Some insurers offer coverage specifically for online service providers. It's relatively inexpensive and can protect you if any legal issues arise from your business activities. One more practical tip - start using a business calendar or scheduling app to track your work hours and client interactions. The IRS likes to see that you're operating like a real business, and having documented business activities can help support your Schedule C filing. Plus it helps you track which expenses are truly business-related vs personal. Finally, consider setting up a simple bookkeeping system now rather than scrambling next tax season. Even something basic like QuickBooks Self-Employed or a detailed Excel spreadsheet can save you tons of headaches later. The key is consistency - record everything as it happens rather than trying to reconstruct months of transactions later.

I really appreciate everyone sharing their experiences here! As someone who's been doing bookkeeping for small businesses for years, I can confirm that findom income definitely needs to be reported as self-employment income on Schedule C. One thing I'd emphasize that hasn't been fully covered is documentation strategy. Since payment apps don't always provide the best records for tax purposes, I recommend creating a simple monthly summary sheet that includes: date received, amount, payment method, and client identifier (doesn't have to be real names, just consistent codes like "Client A", "Client B"). This makes it much easier to cross-reference with your bank statements and payment app records. Also, regarding business expenses - don't forget about things like phone accessories (ring lights, tripods), any software subscriptions you use for editing or communication, and even a portion of your rent if you have a dedicated space you use exclusively for this work (home office deduction). Just make sure you can justify the business purpose for everything you deduct. The quarterly payment advice is spot on. Since you're past the January 15th deadline for Q4 2023, focus on getting your 2023 taxes filed correctly and start making estimated payments for 2024. The Form 1040ES has worksheets that help you calculate the right amount based on your expected income.

Don't panic yet! I had the same issue last year and it turned out my 1099-B wasn't available until late February. Since you mentioned you made stock trades and had dividend income, you should definitely receive tax documents from Robinhood. A few things to double-check while you wait: 1. Make sure you're logged into the correct Robinhood account 2. Check that electronic delivery is enabled in your account settings under "Documents" 3. Verify your email and mailing address are current in case they need to send notifications The February 15th deadline is when they're supposed to have them ready, but in practice many brokers (especially Robinhood) often take until the end of February. If you're anxious to file your taxes, you could try pulling your monthly statements and calculating your gains/losses manually, but I'd recommend waiting for the official forms to avoid any discrepancies. If you still don't see anything by March 1st, that's when I'd start reaching out to their customer support for answers.

I had a similar experience with Robinhood last tax season! It's definitely frustrating when you're ready to file but waiting on those forms. Since you mentioned making trades and having dividend income, you should definitely receive tax documents. One thing that helped me was downloading all my monthly statements from Robinhood while waiting for the official 1099. Even though you'll want to use the official forms when they arrive, having your statements can give you a good estimate of your gains/losses and help you prepare your return in advance. Also, just a heads up - if you had any crypto transactions on Robinhood, those might be processed separately and could cause additional delays. They've gotten better about this, but crypto reporting has historically been one of their slower processes. Don't stress too much about the timing. Most people I know who use Robinhood don't get their forms until late February or early March. The important thing is that you're being proactive about it!