Just a heads up for anyone applying for an ITIN - the process is taking MUCH longer than usual right now. I applied in September and just got my number last week (almost 4 months later!). The IRS website says 7-11 weeks but that seems to be pre-pandemic timing. Plan accordingly if you need your ITIN by a specific date! Also, TRIPLE check your application for errors. My roommate's application was rejected because he didn't check one of the little boxes in section 6d. Such a small error caused a 2-month delay for him.

Rita, I went through this exact same process last year as an international student from India! I was terrified about mailing my passport too. Here's what I learned that might help you: You definitely have options beyond mailing your original passport. I ended up going to an IRS Taxpayer Assistance Center (like Khalid mentioned) and they verified my documents in person - no appointment stress since I called well in advance. The whole appointment took maybe 30 minutes. For your situation as a student receiving a taxable stipend, you'll likely qualify for Exception 1(a) which allows you to apply for the ITIN along with your tax return. But since you mentioned getting the stipend soon, you might want to apply now under Exception 2(c) if you're receiving any kind of scholarship or fellowship income. One tip that saved me: bring extra copies of everything to your appointment or Certifying Acceptance Agent visit. I brought like 3 photocopies of my passport, visa, I-20, and any other supporting docs. The agent kept one set and I got to keep my originals and the other copies. The whole process took about 9 weeks for me (this was last spring), but like Lena mentioned, it's taking longer now. Start as early as you can! Good luck with everything - you've got this! 🙂

Quick question - what state are you in? Property transfer rules and taxes vary significantly by state, and that could impact your decision. In some states, transferring property to an LLC triggers transfer taxes that could be substantial depending on the property value.

I went through a very similar situation with inherited property and an LLC last year. One thing that really helped me was understanding that the IRS treats contributions to multi-member LLCs differently than single-member LLCs. Since you mentioned your LLC has another member, you'll want to be especially careful about the valuation and documentation. Based on my experience, I'd strongly recommend getting a professional appraisal before making any transfers. The IRS can challenge valuations, and having a defensible fair market value is crucial whether you're calculating gift tax implications or capital gains. Also, make sure your LLC operating agreement clearly addresses how property contributions are handled and how they affect each member's capital accounts. One approach my tax advisor suggested was structuring it as a sale to the LLC with the LLC giving you a promissory note, rather than an outright contribution. This can help avoid immediate gift tax issues while still getting the property into the LLC. The note payments would then represent your withdrawal of capital over time. Just make sure the terms are at fair market rates to avoid imputed income issues. Whatever you decide, document everything thoroughly. The IRS pays close attention to transactions between related parties and LLCs, so having clean paperwork from the start will save you headaches later.

One thing nobody's mentioned yet - if you're making $78k as a developer, you might want to look into Qualified Business Income (QBI) deduction implications. As either a 1099 or an LLC taxed as a sole proprietor, you can potentially deduct up to 20% of your qualified business income. But if you go S-Corp route, the salary portion doesn't qualify for QBI (only the distribution portion does). So while you save on SE tax with S-Corp, you might reduce your QBI benefit.

I'm a software developer who switched from 1099 to LLC with S-Corp election last year. Here's what I've learned: 1. The tax savings are real but so are the costs. I save about $4,800/year in SE taxes but pay about $1,200 in additional expenses (payroll service, registered agent fee, additional tax prep fees). 2. The paperwork is a pain. Quarterly payroll filings, annual reports to the state, separate business bank account, more complex tax returns. 3. For me it was worth it financially, but the time cost is significant too. I spend about 5-6 hours per month on additional paperwork I didn't have as a 1099 contractor. 4. One unexpected benefit: clients take me more seriously as an LLC and I've been able to raise my rates by about 15%.

4 Has anyone used TurboTax or similar software for filing back taxes? Or do you need to go through a tax professional? I'm in a similar situation (missing 2019-2020) and trying to figure out the cheapest way to get caught up.

I'm in a very similar boat - didn't file 2018-2020 and just got caught up on recent years. One thing I learned that might help you: if your income was under the filing threshold for those years (around $12,200 for single filers in 2017-2019), you technically weren't required to file. But even if that's the case, filing can still be beneficial. Here's what I'd recommend: start by requesting your wage and income transcripts from the IRS for those years to see exactly what income was reported. This will help you determine if you actually owe anything or if you might be due refunds you didn't expect. For your financial aid situation, while FAFSA mainly looks at the prior-prior year, some schools do ask for additional tax information during verification. Having everything filed removes any potential roadblocks there. The peace of mind factor is huge too. I was constantly worried about getting a letter from the IRS, and filing those back years eliminated that stress completely. Even if your tax guy thinks it's unnecessary, it's your call - and honestly, a good tax professional should support getting you fully compliant rather than questioning it.

One important thing nobody's mentioned yet - make sure you check your state's requirements for ongoing LLC compliance! In my state (California), you have to pay an $800 annual franchise tax just to maintain your LLC, regardless of whether you make any money. I learned this the hard way and got hit with penalties because I thought "no income = no taxes." Keep in mind there might be: - Annual state fees/franchise taxes - Annual reports/statements of information - Business license renewals - Registered agent fees These costs exist even when you're pre-revenue, so factor them into your startup budget. Each state is different, so check your specific location.

Don't overthink this! I formed my LLC 2 years before I made a single dollar. Just keep your business and personal finances separate from day one (separate bank account is a must), track all expenses meticulously, and save receipts for everything. For accounting software, check out Wave - it's completely free for basic accounting and receipt tracking. You can connect your business bank account and it'll pull in all transactions automatically. When you start making money, I'd recommend getting professional help around the $5k revenue mark. Before that, most accountants will charge you more than they're saving you.