This thread is super helpful. Another advantage no one mentioned - asset protection. Having your LLC receive the K-1 adds another layer of protection between your personal assets and any practice liabilities. This is separate from malpractice concerns. I've had my LLC receive K-1s from two different medical groups for 5+ years without issues. The setup costs were minimal compared to the benefits.

Great discussion here! I'm also a physician looking into this structure. One thing I'd add is to make sure you understand the state-specific implications. Some states have different rules for professional LLCs or additional licensing requirements when a professional service is provided through an entity rather than directly by the individual. In my state (Texas), I had to register my LLC as a Professional Limited Liability Company (PLLC) and ensure it was properly licensed to provide medical services. This added some paperwork but wasn't a deal-breaker. The state medical board also had to approve the arrangement since technically the PLLC becomes the entity providing medical services. Also, regarding the vehicle expenses mentioned in the original post - this can be a significant benefit. I've been able to deduct 100% of my vehicle expenses for medical conferences, hospital visits, and practice-related travel through my PLLC, whereas as an individual I was limited to the unreimbursed employee expense deductions (which were mostly eliminated after 2017 tax changes). The key is having good documentation and making sure everything is properly structured from day one. Worth consulting with both a tax attorney and your state medical board before making the switch.

Quick tax tip - if your total non-cash donations for the year exceed $500, you MUST file Form 8283 with your return. I learned this the hard way and got a letter from the IRS about my kitchen donation.

Great advice from everyone here! Just wanted to add that you should also keep detailed records of your donation process. I recommend taking timestamped photos of the items before donation, getting measurements, and noting any defects or wear patterns. When I donated my kitchen items last year, I created a simple spreadsheet with each item, its condition, measurements, and my estimated value with notes on how I determined that value (comparable sales, age, condition factors, etc.). This documentation was invaluable when preparing my taxes. Also, don't forget to factor in installation costs when researching comparable values - cabinets that are easy to remove and reinstall are worth more than custom built-ins that would require modification. Since yours are being picked up by Habitat, they're likely standard sizes which helps maintain their value. One last tip: if your total donation value approaches $5,000, consider getting a professional appraisal. It costs money upfront but can save you major headaches if the IRS questions your valuation later.

Has anyone successfully disputed a CP-2000 and had the amount reduced? Mine says I didn't report stock sales but I definitely included them on my Schedule D. I'm thinking maybe I made a typo on a cost basis or something?

I went through this exact same situation last year with a CP-2000 notice for about $1,800. The key thing to understand is that your online account showing $0 is completely normal - the CP-2000 is just a proposed assessment, not an actual bill yet. First, carefully review the notice to see exactly what income or deductions they're questioning. In my case, it was unreported 1099-MISC income from freelance work that I thought I had included but apparently miscategorized. If you agree with their assessment, sign the response form and either pay the full amount or set up a payment plan. If you disagree (even partially), gather your supporting documents and write a clear explanation of why their calculation is wrong. Whatever you do, don't ignore it! The 30-day response deadline is firm, but you can call the number on your notice to request an extension if you need more time to gather documents. I ended up agreeing with about 60% of their assessment after proving I had reported some of the questioned income correctly.

Just want to add that I'm in a similar production business with an S-corp and I DO file Schedules L and M-1 even though I'm under the threshold. My reasoning is that these schedules create a paper trail of your business's financial position over time. If you ever get audited or need to show financial history for loans/investors, having these forms consistently filed gives a more complete picture.

Based on your situation, you're absolutely correct that Schedules L and M-1 aren't required since you're well under the $250k threshold. However, I'd strongly recommend addressing the salary issue that Dmitry mentioned - the IRS can be quite strict about S-corp owners taking reasonable compensation when the business is profitable, even if it's just $1,270. For the schedules themselves, since you're a small one-person operation, I'd suggest keeping it simple and only filing what's required unless you have a specific reason to include them (like establishing a financial history for future lending). Your time is probably better spent on growing the business back to full operations. One practical tip: if you do decide to include the optional schedules in future years as your business grows, start maintaining the books now in a way that makes completing them easier later. This gives you flexibility without extra work this year.

Which tax software handles LLC expenses the best? I've been using TurboTax but I'm not sure if it's asking all the right questions about my business deductions.

Speaking from experience as someone who went through this exact situation - you're not alone in this confusion! The key thing is to get organized now rather than panic. Here's what I'd prioritize: First, create a separate business checking account immediately. Going forward, ALL business expenses should go through this account. For past mixed expenses, go through your statements line by line and create a detailed spreadsheet marking each expense as personal or business with a brief note about the business purpose. For your laptop, the 70/30 split is correct - you can only deduct 70% as a business expense. Keep documentation of how you calculated that percentage in case of questions later. Regarding your home office, the "exclusive use" test is important. If family occasionally uses it, you might not qualify for the full deduction, but you could still claim it if the primary use is business. Consider the simplified method ($5/sq ft up to 300 sq ft) to start. Don't stress too much about past mistakes - the IRS understands that small business owners sometimes mix expenses initially. The important thing is showing good faith effort to separate them going forward and having reasonable documentation for what you claim. Consider hiring a CPA for this first filing since you have mixed expenses. The cost is deductible and the peace of mind is worth it!