I setup an LLC with my brother last year and wish I'd gotten better advice from the start! Make sure they file for an EIN immediately if they haven't already. Also very important - make sure they have a proper operating agreement that spells out profit sharing, voting rights, what happens if someone wants to leave, etc. This has tax implications too!

Great advice from everyone here! As someone who's helped several young entrepreneurs navigate LLC taxation, I'd add one more consideration: make sure your daughter and her partner discuss what happens with estimated quarterly tax payments. Since they'll likely owe self-employment tax on their profits (whether they take draws or not with partnership taxation), they may need to make quarterly estimated payments to avoid penalties. The IRS generally requires quarterly payments if you'll owe $1,000 or more in taxes. For their social media consulting business, income might be irregular - some months might be great while others are slower. I'd recommend they set aside about 25-30% of their profits in a separate tax savings account to cover both income tax and self-employment tax obligations. This habit will serve them well regardless of which taxation method they ultimately choose. Also seconding the advice about getting that operating agreement in place ASAP - it should specify how profits and losses are allocated, which directly impacts their individual tax situations!

Been there too! Another option is checking your account transcript on irs.gov - look for TC codes like 898 or 896 which indicate offsets. But honestly the codes are pretty cryptic. If you have any federal student loans, child support, or state tax debt, those are the most common reasons for offsets. The Treasury site Isabella mentioned is legit but can be glitchy. Worth trying both approaches before dealing with phone hell 📞💀

Ugh I feel your pain! I was in the same situation last month and found a few ways that actually work. First, definitely try the Treasury Offset Program site that Isabella mentioned - fiscal.treasury.gov/TOP/. Sometimes it's buggy but when it works it shows you exactly what debts are causing offsets. Also check your IRS account transcript for codes like TC 898 or TC 896 which indicate offsets. And honestly, taxr.ai that everyone's mentioning seems legit - my cousin used it and it broke down everything super clearly including which agency was taking her money and how much. Way better than sitting on hold for hours just to get disconnected 🤬

Another option nobody's mentioned - if your business structure allows it, you could put each vehicle on a separate Schedule C if you have legitimately different business activities. I'm a realtor but also do Doordash, so I keep them as separate businesses and use standard mileage for my newer car (Doordash) and actual expenses for my SUV (real estate). My accountant says its totally legit as long as they're genuinely different business activities. Just throwing that out there as another possibility!

I just want to point out that whichever method you use, keep INSANELY detailed records!! I got audited last year specifically on vehicle expenses because I was using both methods (actual for my work truck, mileage for my car). The IRS agent wanted to see EVERYTHING - mileage logs with odometer readings, all receipts, proof of business use percentage, etc. They were particularly interested in making sure I wasn't double-dipping on any expenses. Ended up being fine because I had good records, but it was stressful. Just a heads up!

I completely understand your concerns about data security - it's actually really smart that you're being cautious about this at 18! I've been using Tax1099.com for my small marketing consultancy for the past three years, and they've been solid in terms of security and reliability. What really convinced me to stick with them was their customer support. When I first started using their service, I called and asked specific questions about how they encrypt data, how long they store it, and what happens if there's a breach. They were completely transparent and even sent me documentation about their security certifications. A few practical tips from my experience: Make sure you're using a secure internet connection (not public WiFi) when entering the SSNs, and consider doing it all in one session rather than saving and coming back multiple times. I also screenshot the confirmation pages showing successful submission - it's saved me twice when I needed proof of filing. Since you mentioned your contractors are also new to this, I'd suggest creating a simple one-page explanation of what a 1099-NEC is and why you need their W-9 forms. I include the IRS website link and explain that it's required by law for any contractor paid over $600. It makes the whole process feel more professional and legitimate for everyone involved. Your window cleaning business sounds like it's growing fast - getting the tax compliance right from the beginning is going to serve you really well as you scale up!

I totally get your security concerns - I was in the same boat when I started my small business at 22! Tax1099.com is definitely legitimate and IRS-authorized, but if you're still feeling nervous about it, you might want to check if your business banking provider offers 1099 filing services. Many banks like Chase, Wells Fargo, and smaller credit unions provide this as part of their business banking packages, sometimes even for free if you meet certain criteria. Since you already trust your bank with your business finances, using their 1099 service might feel more secure than a third-party platform. Plus, everything would be integrated with your existing business accounts, which makes record-keeping easier. Another option is to visit a local CPA or tax professional for your first year. Yes, it costs more upfront, but they can walk you through the entire process, help you collect the W-9s properly, and file everything for you. This gives you a chance to learn how it all works before doing it yourself next year. Many CPAs also offer "small business startup packages" that include 1099 preparation. Don't stress too much though - you're being really responsible by thinking about this stuff early. Most 18-year-olds running businesses don't even know about 1099 requirements, so you're already ahead of the game!

Quick question - does anyone know if this same rule applies to fundraisers for starting a small business? I received about $17k from a GoFundMe to launch my food truck last year and I'm freaking out about taxes!

I really appreciate everyone's detailed responses here! This has been incredibly helpful and honestly relieved a lot of my anxiety about the tax situation. It sounds like the consensus is that since this was for medical expenses, the funds should be considered non-taxable gifts rather than income. I'll make sure to keep all the documentation about the campaign's purpose and be prepared to explain it if I receive a 1099-K. One follow-up question - should I be concerned about the donors having any gift tax implications? Since there were about 250 people who contributed and the average was around $60 per person, it seems like everyone stayed well under the annual gift limit, but I want to make sure I'm not inadvertently causing tax issues for the wonderful people who helped us out. Thanks again everyone - this community is amazing for providing such thoughtful and detailed advice during a stressful time!