Is that true across all states? I'm in Florida and starting a similar business. Did your broker explain why there's a difference in rates between the two structures?

From what our broker explained, it's not universal across all states but is common in many. The difference comes from how insurance companies assess risk based on historical claims data. They have more data on contractor LLCs than LLPs since LLCs are much more common in the construction industry. In Florida specifically, I've heard the difference can be even more pronounced because of how your state handles construction defect claims and the associated liability. Insurance companies have specific rating factors for different business structures, and LLCs in contracting tend to have more favorable loss histories in their actuarial data. Definitely worth getting quotes for both structures from a broker who specializes in contractor insurance.

Can you explain more about how that works? We're just starting but hoping to grow quickly. How complicated was switching to S-Corp taxation?

That's reassuring to hear! Have you ever heard of the IRS taking back a refund once it was deposited? That's my main worry - spending the money and then suddenly finding out there was some mistake and owing it all back.

I've never personally heard of the IRS taking back a refund after it was deposited unless there was actual fraud involved or a massive calculation error. If you filed honestly and the amount matches what your tax software calculated, you should be absolutely fine. If it gives you peace of mind, you could keep the bulk of it in your checking account for a week or so before moving it to savings or spending it. But really, once it's in your account, it's almost certainly legitimate and yours to keep.

Great advice. I just checked my transcript and it showed my refund was processed even though the tracker still says "received" like OP's situation. The transcript is definitely more reliable!

What if you don't have the last paystub either? Is there a way to calculate approximately how much was withheld based on your income? Like is there a standard percentage or something?

Unfortunately, there's no standard percentage that would be accurate enough for tax filing purposes. Withholding varies based on your income level, filing status, number of allowances you claimed on your W-4, and sometimes other factors like benefits or retirement contributions. That's why getting the actual information from the IRS transcript is the most reliable option. Making a guess could result in serious discrepancies that might trigger notices or audits later.

That's actually a really good tip! I tried this about 3 weeks ago and got through much faster than with the IRS. The SSA rep was able to give me my wage information, though they couldn't provide the exact federal withholding amount. Still gave me enough info to file Form 4852 with a pretty accurate estimate.

Is this just a TaxSlayer issue or do other tax software companies do this too? I'm thinking of switching to TurboTax or H&R Block next year if they're more reliable with this.

Most tax software does this to some extent, but TaxSlayer seems particularly bad about it in my experience. TurboTax is slightly better - when they say "sent" it usually shows up in the IRS system within 2-3 days. H&R Block was about the same in my experience. The real issue is that these companies say "sent to IRS" when what they really mean is "sent to our processing center for eventual transmission to the IRS." It's misleading but pretty standard across the industry.

Thanks for sharing this! I just checked the IRS website and you're right - they do mention this timeframe. I guess I just expected it to be faster since everything else is digital these days. Makes me feel a bit better knowing it's normal.

That 3 week timeframe seems like a massive exaggeration though. I've used TurboTax for years and it usually shows up in the IRS system within 48 hours. Sounds like TaxSlayer might be slower at actually transmitting than they claim.

What's considered "reasonable" though? That seems super subjective. I do cybersecurity consulting and charge $175/hr but only take home about $80k in salary and the rest as distributions. Is there some formula or percentage that's considered safe?

The R&D tax credit is intriguing - I develop custom solutions for clients frequently. What kind of documentation is needed to support R&D credit claims? I keep detailed time logs already, but wonder if there's specific additional documentation I should be maintaining.

For R&D credits, you'll want to maintain several types of documentation. Time tracking is a good start, but break it down to show which hours were spent on activities that qualify (experimentation, development of new techniques, solving technical uncertainties) versus routine work. Keep design documents, project plans, and technical specifications that show the innovation challenges you were addressing. Emails or meeting notes discussing technical problems and proposed solutions are valuable. Document testing procedures and results, especially failed approaches that led to new directions. It's also helpful to have a narrative for each project explaining why it required innovation rather than just applying existing solutions.