Does anyone know if you can have multiple SMLLCs? Im thinking about starting a second business but keeping it separate from my first one. Would I report both on the same Schedule C or have multiple Schedule Cs?

Great question! I went through this exact same confusion last year with my SMLLC. Here's what I learned after consulting with a tax professional: For issuing the 1099-NEC: Use your LLC's information (LLC name, EIN, and LLC address) as the payer. Even though it's a disregarded entity for income tax purposes, the LLC is still the legal entity that made the payment to your contractor. For your mixed 1099s: You're absolutely right to report both exactly as issued on your tax return. The one with your SSN goes on Schedule C as normal business income, and the one with your LLC's EIN also goes on Schedule C (same schedule). TurboTax handles this well - just make sure when you enter the LLC's 1099, you indicate it's for the same business activity. One tip that saved me headaches: Keep really good records showing which payments came through which entity. It helps during tax prep and if you ever get questions later. Don't stress too much about being late on the 1099-NEC - as long as you get it filed soon, the penalties aren't usually too severe for first-time issues. The important thing is getting it right going forward!

I went through this exact same situation with HSA Bank last year and it's incredibly frustrating that they don't help with the calculation. Here's what I learned: Since your excess contribution happened on December 30th, you're actually in a pretty good position - there's only been 2 days for any gains/losses to accumulate. The fact that the calculator is showing less than your $82.49 excess means your HSA investments had a small loss during those two days. You should definitely withdraw the calculated amount (not just the $82.49). The IRS requires you to remove the excess contribution adjusted for any proportional gains or losses. In your case, the loss actually works in your favor since you'll withdraw slightly less than what you contributed. Make sure to: 1. Request that HSA Bank code this as an "excess contribution removal" on your 1099-SA 2. Complete the withdrawal before you file your 2024 taxes 3. Be prepared for HSA Bank's $25 processing fee Since you haven't filed your 2024 taxes yet, you're well within the deadline and won't need to worry about the 6% excise tax or Form 5329 as long as you handle this promptly.

I just went through this exact same mess with HSA Bank a few months ago - they're absolutely terrible at helping customers with these calculations! The good news is that since your excess happened so late in the year (December 30th), you're dealing with minimal earnings/losses. Here's what you need to know: If the calculator is showing a withdrawal amount less than your $82.49 excess, that means your HSA investments had a small loss during those final two days of the year. This actually works in your favor - you only need to withdraw the calculated amount, not the full excess. The IRS formula is: (Excess Contribution) × (Net Income ÷ Fair Market Value). Since your account value dropped slightly, the "Net Income" part is negative, reducing your required withdrawal. Make sure to: - Request HSA Bank code this as "excess contribution removal" - Get it done before filing your 2024 taxes - Budget for their annoying $25 processing fee Since you're handling this in January and haven't filed yet, you're well within the deadline and won't face the 6% excise tax. The withdrawal will show on a 2025 1099-SA but corrects your 2024 contribution limit issue.

I went through this exact same process last year when I incorporated my mobile game development company in Ontario. The W-8BEN-E form was definitely intimidating at first, but once I understood the key classifications, it became much clearer. A few additional tips that helped me: 1. Make sure you're clear on your entity type classification in Part I - for a standard Canadian corporation, you'll typically select "Corporation" 2. In Part II (Disregarded Entity), you'll likely leave this blank since your corporation isn't a disregarded entity 3. For Part III (Claim of Tax Treaty Benefits), be very specific about citing "Article 12 of the Canada-United States Income Tax Convention" and state the rate as 0% for royalties 4. Don't forget to sign and date the form! I actually forgot this on my first submission and had to resubmit The key thing to remember is that App Store revenue for digital products is generally treated as royalties under the tax treaty, not business profits. This distinction is crucial for getting the right withholding rate. Good luck with your incorporation transition! It's definitely worth getting it right the first time to avoid delays with your App Store payments.

I just went through this exact process a few months ago when I transitioned my indie game studio to a corporation! The W-8BEN-E definitely feels overwhelming at first, but it's much more straightforward once you understand the key points. For Canadian corporations selling on the App Store, here's what I learned: **Income Classification**: Your App Store revenue is classified as royalties, not business profits. This is because you're licensing your software to Apple for distribution, making it royalty income under Article 12 of the Canada-US tax treaty. **Key Form Sections**: - Part I: Standard corporation info (make sure your legal name matches exactly with your incorporation docs) - Part III: Claim treaty benefits under Article 12, enter 0% withholding rate - Part XXV: Most app dev corps qualify as "Active NFFE" since you're actively running a business **Critical Details**: - Include your Canadian Business Number in the foreign tax ID field - In the Limitation on Benefits section, mention that you meet the ownership test (since all shareholders are Canadian) - Don't forget to actually sign and date the form! The treaty benefit is huge - it reduces your US withholding from 30% down to 0% for royalties. Having all Canadian shareholders actually helps because it makes the Limitation on Benefits provisions easier to satisfy. Apple typically reviews these within 5-7 business days. If they reject it, they'll usually tell you exactly what needs to be fixed. Just make sure every detail matches your corporate documents perfectly. Hope this helps! The corporate structure is definitely worth it for the tax benefits and liability protection.

H&R block charged me $450 last year for basically typing numbers from my forms into their computer. This year I did it myself with TurboTax and paid $120. Self employed too with some investment stuff. The software asks the same questions the human did tbh.

Wow, $675 is absolutely outrageous for a straightforward self-employment return! I had a similar experience with H&R Block a few years ago - they quoted me $550 for what was essentially just a Schedule C and basic forms. I ended up walking away and never went back. The reality is that most self-employed people with simple situations can easily handle their own taxes with good software. The "complexity" they charge you for is really just filling out Schedule C, which asks pretty straightforward questions about your income and business expenses. Unless you have multiple businesses, complex depreciation schedules, or unusual deductions, you're paying hundreds of dollars for data entry. I've been doing my own self-employment taxes for the past 3 years using various software options and have saved thousands compared to what these chain preparers were charging. The software walks you through everything step-by-step and often catches deductions that the rushed preparers at these big chains miss anyway.

Thanks everyone for all the helpful information! As someone who just went through incorporating my freelance business in Canada, this thread has been incredibly valuable. I want to add one more tip that saved me some headaches: make sure your Canadian business registration information (business number, registered address, etc.) exactly matches what you put on the W-8BEN-E form. Apple's tax validation system is pretty strict about consistency between documents. Also, if you're like me and procrastinated on getting your CRA business number, you can actually get it online instantly through the CRA website once your corporation is registered. You don't have to wait for mail anymore - they give you the number immediately after completing the online application. The combination of properly completing the W-8BEN-E for the 0% withholding rate AND making sure you're enrolled in the Small Business Program for the 15% commission rate can make a huge difference in your bottom line. Don't forget about either one!

This is an incredibly thorough discussion! As someone who works with international tax compliance, I want to add a few additional points that might help other Canadian developers: 1. **Documentation retention**: Keep copies of your submitted W-8BEN-E and any correspondence with Apple. The IRS can request these during audits, and having proper documentation of your treaty claim is crucial. 2. **Quarterly estimated taxes**: Don't forget that as a Canadian corporation earning US-source income, you may need to make quarterly estimated tax payments to the CRA. The reduced withholding from the treaty means less tax is being withheld upfront, so plan accordingly. 3. **Transfer pricing considerations**: If you have any related entities or if your business structure becomes more complex, be aware of transfer pricing rules. This isn't usually an issue for simple owner-operated corporations, but it's worth understanding if you plan to expand. 4. **State tax implications**: While the federal W-8BEN-E handles federal withholding, some US states have their own sourcing rules for digital products. Most don't tax foreign corporations on royalty income, but it's worth researching if you have significant revenue. The resources mentioned in this thread (taxr.ai for form guidance and Claimyr for IRS contact) seem to have helped several people navigate this successfully. Good luck with your incorporation!