Has anyone else run into issues with lenders when taking this approach? I did something similar last year, and even though we technically kept the same borrowing entity (the LLC), the bank eventually found out about the ownership change and triggered a due-on-sale clause in the mortgage. Ended up having to refinance at a higher rate.

This is a complex situation that requires immediate attention to several tax and legal issues. First, yes, an S-Corp can legally own 100% of an LLC, but there are critical steps you need to take to properly structure this arrangement. Since you've acquired the single-member LLC, it will become a disregarded entity for federal tax purposes unless you make a specific election otherwise. This means all income, expenses, and activities of the LLC flow through to your S-Corp's tax return (Form 1120S). You'll need to file Form 8822-B to update the responsible party information with the IRS, changing it from the original owner's SSN to your S-Corp's EIN. Regarding your property tax avoidance strategy, I'd strongly recommend checking your local jurisdiction's rules immediately. Many counties and states have closed this "loophole" by defining transfers of controlling interest in entities as taxable events. You may still face reassessment despite purchasing the LLC rather than the property directly. For mortgage payments, you can continue making them through the LLC as normal, but be aware that many commercial loans contain change-of-control provisions that could trigger acceleration clauses when ownership changes occur. I'd recommend consulting with both a tax professional and attorney familiar with your jurisdiction's property tax laws to ensure you're compliant with all requirements and to address any potential issues before they become problems.

This is such a complex situation, but you're definitely not alone in dealing with multi-state tax issues! Based on what you've described, Colorado sounds like it remains your domicile since that's where your official documents and permanent ties are. One thing I'd recommend is keeping detailed records of your travel dates and work locations going forward - this will be crucial for calculating income allocation between states. You can use a simple spreadsheet or even a phone app to track which days you're working where. Also, don't panic about the withholding situation. Even if Colorado was the only state withholding taxes, you can often claim credits on your Colorado return for any taxes you end up owing to Arizona as a non-resident. This prevents double taxation on the same income. Since you mentioned you can't afford a tax professional right now, consider looking into VITA (Volunteer Income Tax Assistance) programs in your area. They provide free tax help and many volunteers are trained to handle multi-state situations. The IRS website has a locator tool to find VITA sites near you.

I've been through a similar multi-state work situation and want to emphasize something that could save you a lot of headaches - make sure you understand each state's "safe harbor" provisions for temporary work assignments. Since you're spending significant time in multiple states but your employer is only withholding for Colorado, you'll likely need to make quarterly estimated payments to Arizona to avoid underpayment penalties. Arizona considers you subject to their income tax if you're earning income while physically present in the state, regardless of your residency status. The good news is that Colorado will give you a credit for taxes paid to other states, so you won't be double-taxed on the same income. But you do need to be proactive about the Arizona payments since your employer isn't withholding for them. For tracking your income allocation, I'd suggest using a simple formula: total days worked in Arizona ÷ total days worked everywhere × annual income = Arizona-sourced income. Keep a basic log of your work locations - even just marking it on a calendar will be sufficient documentation if questioned later. Also, since Washington has no state income tax, those 5 months actually simplify things for you compared to if you were working in a state like California or New York!

According to Internal Revenue Manual 21.4.1.3, normal processing time for electronically filed returns is 21 days, though the IRS is not obligated to issue refunds within this timeframe. Section 6402(a) of the Internal Revenue Code gives the IRS broad authority to determine refund timing. Community wisdom suggests checking transcripts on Thursdays or Fridays between midnight and 6am EST when batch processing typically occurs. Most returns with filing status changes undergo additional verification per IRM 25.25.3, but this rarely results in audit selection.

I completely understand your anxiety - going through a divorce and filing status change adds extra stress to an already nerve-wracking process! I went through something similar two years ago. At 14 days, you're still well within normal processing times, especially with the filing status change. The IRS typically takes longer to process returns when there are significant changes like yours (divorce, dependent claims, etc.) because they need to verify the information against their records. What helped me was understanding that transcript updates don't happen in real-time - they usually batch update on Thursday/Friday nights. Try checking Friday morning around 6am EST when the system refreshes. Also, make sure you're checking both your Account Transcript AND Return Transcript, as sometimes one updates before the other. The good news is that "accepted" means they've received your return and it passed their initial automated checks. Now it's just working through their processing queue. With the filing status change, I'd expect to see movement by day 18-21. Hang in there!

I'm glad I found this thread! I'm in a similar situation with multiple SaaS vendors and was getting overwhelmed trying to figure out which ones needed 1099s. The credit card payment exemption is news to me - that simplifies things a lot since I pay most of my software subscriptions that way. One question though - what about vendors where I started the year paying by credit card but then switched to ACH payments later to save on fees? Do I need to calculate the portion paid each way, or does the entire annual amount follow the rules of how the majority was paid? Also, for those mentioning W-9s as good practice - do most SaaS companies readily provide these when requested, or do they sometimes push back since they know they're likely exempt anyway?

As a tax professional who deals with this question frequently, I want to emphasize a key point that sometimes gets overlooked - the timing of when you request W-9s matters for your compliance. While everyone's correctly pointing out that credit card payments and corporation status exempt you from 1099 filing requirements, the IRS technically expects you to request W-9s from service providers *before* making payments over $600, not after the fact when you're preparing year-end tax documents. For your current situation with the booking software, you're absolutely fine since you pay by credit card. But going forward, I'd recommend establishing a process where you request W-9s from new service providers upfront - especially if there's any chance you might change payment methods later in the relationship. This proactive approach helps you avoid the scramble of trying to collect forms at year-end, and ensures you have proper documentation if your payment processes change. Most established SaaS companies have streamlined systems for providing W-9s to business customers, so it's rarely a burden for them. The peace of mind of having complete vendor documentation is worth the small administrative effort, even when you're confident no 1099 will be required.

FYI for anyone who's interested - another big misconception is about tax deductions vs tax credits. A deduction reduces your taxable income before the tax brackets are applied. So if you're in the 22% bracket, a $1000 deduction saves you $220. A credit reduces your actual tax bill dollar-for-dollar after all calculations. So a $1000 tax credit saves you $1000 regardless of your bracket. This is why tax credits (like Child Tax Credit) are generally more valuable than deductions of the same amount!

This is such an important topic! I work in tax preparation and the number of clients who come in terrified about getting a raise because they think it'll push them into a higher bracket and they'll "lose money" is astounding. One thing I always tell people is to think of tax brackets like buckets filling up with water. You fill the first bucket (10% bracket) completely before any water spills into the second bucket (12% bracket), and so on. The water in each bucket gets "taxed" at that bucket's rate, but the water in the first bucket doesn't suddenly become more expensive just because you filled up additional buckets. I also recommend people look at their actual tax return from last year - most tax software will show you exactly how much of your income fell into each bracket. It's really eye-opening when you see that even if you're "in the 24% bracket," most of your income was actually taxed at much lower rates. The real tragedy is that this stuff isn't taught in schools, so people make major financial decisions based on completely wrong assumptions about how taxes work.