For what it's worth, I always select "LLC" first, then include a note that says "LLC with S-Corporation tax election" whenever possible. Most forms aren't designed with the nuance of tax elections in mind. On government forms like census surveys or regulatory filings, there's usually an "other" option where you can write in "LLC taxed as S-Corporation" if it seems important for that particular form.

I run into this all the time with clients. The real issue is that forms are designed by people who don't understand the distinction between legal entity type and tax status. Here's what I tell my clients: - Secretary of State filings: Always "LLC" - IRS filings: "S-Corporation" (Form 1120-S) - Loan applications: "LLC" with note about S-Corp election - Insurance applications: "LLC" - Contracts: "LLC" with full legal name including "LLC" What matters is understanding what the form is asking for and why they need to know.

One important thing to know - if you don't complete the W-9 or provide incorrect information, the bank may be required to withhold 24% of your interest earnings as "backup withholding" and send it directly to the IRS. This is why financial institutions are so strict about getting completed W-9 forms from customers. Nobody wants to have their interest earnings reduced by backup withholding if they don't have to.

Just want to add my 2 cents as someone who works at a credit union. The W-9 process for most banks is super simple now - usually just entering your SSN and checking a box during the online application. If it makes you feel better, the bank already has your SSN and tax info if you have other accounts with them. The W-9 requirement is just a formality to make sure they have proper documentation for IRS compliance. Don't overthink it! High yield savings accounts are great for building money, and the tax stuff is actually pretty straightforward. You'll get a 1099-INT in January showing your interest earned, and you just enter that amount on your tax return. It literally takes 2 minutes.

I actually got my letter yesterday after seeing that message for 3 weeks. They just needed me to verify my identity on ID.me. Once I did that it updated to approved within 48 hrs

Hang in there! I went through the exact same thing last year - filed in late January, got the "action required" message, and didn't get my letter until mid-March. Turns out they just needed to verify some information from my previous year's return. The waiting is the worst part, but most of these resolve pretty quickly once you get the letter and respond. Keep checking your mailbox and maybe set up informed delivery with USPS so you can see what's coming. The system is slow but it usually works out in the end!

I'm confused by all this. So if I make $30k total but only have 1099s for $20k, I just put $30k on my Schedule C and that's it? I don't need to tell them which income came from where? I've been itemizing each client separately and its so time consuming!

Just to add some reassurance from personal experience - I had this exact scenario happen to me two years ago. I was a freelance graphic designer reporting about $32,000 in total income, but I never received 1099s from three of my smaller clients (totaling around $5,500). I was really nervous about it too. I reported my full $32,000 on Schedule C anyway, and my return processed completely normally with no delays. The IRS received 1099s for about $26,500, so my reported income was higher than what they had on file. No red flags, no correspondence, nothing. The key thing to remember is that the IRS computer systems are looking for underreporting, not overreporting. When you report MORE than what's on the 1099s they received, it just means you had additional income sources (like cash payments) which is totally normal for sole proprietors. Your refund shouldn't be delayed at all since you're being conservative and reporting everything. The matching happens after your return is processed anyway, so it won't hold up your refund.

Don't forget to track mileage! As a freelancer, I was leaving so much money on the table by not tracking trips to client meetings, supply store runs, etc. The standard mileage deduction adds up fast. I use MileIQ app to automatically track my drives and it's been amazing - just swipe left for personal trips and right for business. Takes seconds but saved me over $2k in taxes last year!

I totally feel your pain with the procrastination spiral! I'm a freelance photographer and used to do the exact same thing - suddenly my kitchen needed deep cleaning whenever tax time came around. One thing that really helped me was setting up a simple system throughout the year instead of trying to tackle everything at once. I created a basic Google Sheet with columns for Date, Amount, Category, Description, and Receipt Photo. Every Friday, I spend just 15 minutes adding that week's expenses while they're still fresh in my memory. For categories, I keep it simple: Equipment, Software/Subscriptions, Travel, Office Supplies, Marketing, Professional Development, and Miscellaneous. The key is being consistent rather than perfect. Also, don't forget about some sneaky deductions that creative freelancers often miss: bank fees for your business account, PayPal/Stripe processing fees, domain renewals, cloud storage for client files, and even a portion of your phone bill if you use it for business calls. You've got this! Just start with one category at a time and reward yourself with something nice (but not a vintage motorcycle research session) after each one is done.