Quick question - has anyone dealt with selling shares that are held in an LLC taxed as an S-Corp? I'm getting conflicting advice on whether the installment method can be used in that scenario.

This is a great question that many people don't realize until they're in the middle of it! One important thing to add to the excellent advice already given - make sure you keep detailed records of ALL payments as they come in throughout the year. Create a simple spreadsheet tracking each payment date, amount, and which milestone it corresponds to. Also, consider setting aside 25-30% of each payment for taxes (depending on your tax bracket). Since you're receiving money throughout the year, it's easy to spend it and then get hit with a big tax bill. I learned this the hard way with my first installment sale - ended up scrambling to find cash for quarterly estimated payments. One more tip: if any of your original shares qualify for QSBS (Qualified Small Business Stock), you could potentially exclude up to $10 million or 10x your basis from federal taxes. Definitely worth checking if your company was a C-Corp with gross assets under $50 million when the stock was issued.

This thread has been absolutely fantastic! I'm launching a SaaS platform for nonprofit donor management and was equally confused about the EIN classification. Reading through everyone's experiences has made it crystal clear that "service" is the right choice for subscription-based software businesses. What I particularly appreciate is how this discussion provides both the practical guidance (everyone who's done this successfully selected "service") and the theoretical foundation (we provide ongoing access and continuous service delivery rather than selling owned products). The IRS documentation references like Publication 535 and the NAICS code information add that extra layer of official backing. I'm definitely going to create that documentation memo with my reasoning and citations - such smart advice from FireflyDreams and others. It's reassuring to know that this classification has worked well for SaaS businesses across so many different industries, from project management to healthcare to e-learning. Thanks to Carmen for starting this discussion and to everyone who shared their expertise. This is exactly why I love this community - experienced entrepreneurs taking the time to help newcomers navigate these administrative challenges. The collective wisdom here is invaluable for those of us just starting our SaaS journey!

This has been an absolutely incredible thread to follow! I'm in the process of launching a SaaS platform for small business payroll management and was facing the exact same confusion about EIN classification that Carmen originally posted about. Reading through all the experiences shared here has given me complete confidence that "service" is definitively the correct classification for subscription-based software businesses. The consensus is remarkable - every single entrepreneur who's actually gone through this process successfully chose "service" and had no issues with that decision. What really clinched it for me was the fundamental distinction that several people explained: we're providing ongoing access, continuous updates, technical support, and platform maintenance rather than selling a product that customers own. That makes the service classification feel completely logical rather than arbitrary. I'm particularly grateful for all the practical implementation advice - the documentation memo idea with IRS citations (Publication 535, NAICS codes) is brilliant and shows real thoughtfulness in business decision-making. The tools like taxr.ai and Claimyr also sound incredibly useful for getting additional validation when needed. This community is amazing - the willingness of experienced SaaS entrepreneurs to share detailed guidance and real-world experiences makes navigating these administrative hurdles so much less intimidating. Thank you to everyone who contributed to creating such a comprehensive resource for newcomers like myself!

Great question about finding those first specialized clients! I started by reaching out to my personal network - friends, family, former colleagues - and being very specific about what I could help with. Instead of saying "I do taxes," I said "I specialize in helping W-2 employees maximize their deductions and handle simple investment income." I also volunteered for one more VITA season after getting certified, which gave me more practice and let me build relationships with other volunteers who became referral sources. Many VITA clients asked if I did paid prep, so I had a pipeline ready. LinkedIn was surprisingly effective too. I posted about completing my certification and offered to help connections with straightforward returns at a discounted rate. Word of mouth is everything in this business - do great work for 5-10 people and they'll each refer 2-3 more. The key was being honest about my experience level but confident about what I could deliver. Clients appreciated the transparency and lower rates while I was learning.

Congratulations on completing your VITA/TCE advanced certification! That's a solid foundation to build on. Since you're operating from abroad, I'd recommend focusing on these key steps: 1. **Get your PTIN immediately** - This is non-negotiable for paid preparation. The IRS online application is straightforward and you can do it from anywhere. 2. **Consider your target market carefully** - Being abroad actually gives you some advantages for serving expats, military overseas, or clients in different time zones. You might want to specialize in this niche since you understand the unique challenges. 3. **Start small and local (digitally speaking)** - Even though you're abroad, consider focusing on clients from one or two states initially to simplify compliance requirements. Some states have minimal requirements beyond the federal PTIN. 4. **Professional liability insurance is crucial** - Don't skip this step. E&O insurance for tax preparers runs about $200-500 annually and protects you from costly mistakes. Look into NATP or NAEA membership which often includes insurance options. 5. **Practice management software** - Beyond tax prep software, you'll need client portals, document management, and scheduling tools. Many all-in-one solutions exist specifically for remote tax practices. The remote aspect is actually becoming more normal post-COVID, so don't let that discourage you. Focus on building systems that demonstrate professionalism despite the distance.

Great thread everyone! As someone who's been reselling for about 2 years now, I want to add a few things that helped me get organized early on: 1. **Separate bank account**: Open a dedicated business checking account for your reselling income/expenses. Makes tracking SO much easier come tax time and looks more professional if you ever get audited. 2. **Mileage tracking**: Don't just track post office runs - also track trips to thrift stores, garage sales, or anywhere you source inventory. The IRS standard mileage rate for 2024 is 67 cents per mile, so it adds up fast. 3. **Photo documentation**: Take photos of your dedicated business space and storage setup. If you're using part of a room, measure and photograph exactly what area is exclusively for business. This saved me during a state tax review last year. 4. **Quarterly estimated taxes**: Once you're making consistent profit (even $400+), consider making quarterly payments to avoid a big tax bill and potential penalties. The IRS has a safe harbor rule where you can pay 100% of last year's tax liability to avoid penalties. The learning curve is steep but totally worth it once you get systems in place. Keep every receipt and document everything - your future self will thank you!

This is such a timely question! I've been doing clothing resale for about a year now and learned a lot through trial and error. One thing I wish someone had told me earlier is to start tracking everything from day one - even if you think your side hustle is "too small" to matter. Beyond what others have mentioned, don't forget about photography equipment! If you bought a ring light, backdrop, or even upgraded your phone specifically for better product photos, those can be business deductions too. I also deduct a portion of my Canva Pro subscription since I use it to create listing graphics. Another tip: if you're buying inventory from other resellers or estate sales, keep those receipts! The cost of goods sold is a major deduction that directly reduces your taxable income. And if you're driving around hitting multiple thrift stores or sales in one day, that's all deductible mileage. The biggest game-changer for me was treating this like a real business from the start, even when I was only making $200-300 a month. It makes tax time so much less stressful when you have organized records instead of scrambling to remember what you spent money on!

I just wanted to chime in with my experience as someone who went through this exact process earlier this year. I purchased a 2024 Wrangler 4xe Rubicon in February and successfully claimed the $3,750 credit on my taxes. A few things I learned that might help others: **Documentation is key** - Like others mentioned, get that manufacturer certification immediately. I also recommend taking photos of all the paperwork at the dealership because some of the forms can be hard to read if they're poorly printed. **Income verification** - I was initially worried about the income limits, but my tax preparer explained that it's your AGI from the tax year of purchase, and there's no phase-out - you either qualify fully or not at all based on the thresholds mentioned earlier. **State incentives vary widely** - I'm in Colorado and we have a $4,000 state tax credit that stacks with the federal credit. Combined with some sales tax exemptions, the total savings were substantial. Definitely worth researching what your specific state offers. **Real-world EV range** - Since someone asked about actual driving range, I'm getting about 18-22 miles of electric-only range depending on weather and driving conditions. Perfect for my daily commute and errands around town. The whole process was smoother than I expected once I had all the right documentation. The Form 8936 is straightforward if you're using tax software - TurboTax walked me through it step by step. Just make sure you have the VIN, purchase date, and that manufacturer certification ready when you file. Happy to answer any specific questions about the Colorado incentives or the filing process!

I've been researching the Wrangler 4xe tax credit extensively and wanted to share what I've learned from speaking with both IRS representatives and my CPA about this specific vehicle. The $3,750 credit amount mentioned throughout this thread is correct for the 2024 Wrangler 4xe. However, there are a few nuances worth highlighting: **Battery Assembly Location Matters** - The Wrangler 4xe's battery is assembled in the US, which is why it qualifies for at least the $3,750 portion of the credit. The critical minerals requirement (for the other $3,750) is where it currently falls short. **Purchase vs Delivery Date** - Make sure you understand that it's the delivery date that determines eligibility, not the order date. If you order in 2024 but take delivery in 2025, you'll be subject to whatever rules are in effect for 2025. **Final Assembly Requirement** - The Wrangler 4xe is assembled in Toledo, Ohio, so it meets the North American final assembly requirement. This is important because vehicles assembled outside of North America don't qualify at all. One thing I haven't seen mentioned is that if you're planning to use this vehicle for business purposes, you might also be eligible for Section 179 deduction or bonus depreciation in addition to the tax credit, but you'd need to work with a tax professional to determine the best approach since you can't double-dip on the same vehicle cost. For anyone still deciding between new and used, remember that the used EV credit has much stricter income limits ($75K single, $150K married filing jointly) compared to the new vehicle credit, so factor that into your decision.