That's really helpful. We have 3 people on our tax team right now, but we're planning to grow. Would you recommend starting with something simpler and migrating later, or just jumping into OneSource to avoid multiple transitions?

With a team of 3, I'd probably recommend starting with something simpler unless your corporate structure is already quite complex. The licensing and implementation costs for OneSource are substantial, and you won't utilize many of the advanced features right away. If you're definitely planning to grow significantly in the next 1-2 years, it might make sense to start with OneSource to avoid multiple transitions. But if growth will be more gradual, you could save considerably by using a mid-tier solution for now and migrating when you have 5+ tax specialists.

I've used both extensively. Thomson OneSource is stronger for corporate tax work, especially complex multi-entity structures. CCH Axcess has better workflow management and is more intuitive for new users. If you're primarily focused on corporate income tax with multi-state filings, Thomson has the edge. For a balanced practice with both individual and corporate clients, CCH might be better. Thomson's document management isn't as seamless as CCH's, but their calculation engine is more robust for complex scenarios.

That's a great suggestion I hadn't thought of! Do you know if these built-in calculators typically handle all the different pre-tax options and show the tax implications clearly? Our HR system is ADP but I haven't fully explored all its features.

Most employer HR systems with these calculators do handle all the pre-tax options specific to your company's benefits package. They're usually more accurate than generic calculators because they're configured with your exact benefit structure. ADP definitely has this feature! Look for something called "Paycheck Modeling" or "Net Pay Calculator" in your ADP portal. It should let you adjust all available pre-tax deductions and show exactly how they affect your take-home pay. If you can't find it, ask your HR department - sometimes these features aren't enabled by default.

I use the TurboTax tool every year after doing my taxes. It's decent but doesn't really show the impact of changing pre-tax deductions in real-time. It's more focused on getting your W-4 withholding right than optimizing across different pre-tax options. I ended up using a combination of that plus a separate calculator for my 401k/HSA decisions.

Thanks for the feedback! You're right that it's more withholding-focused. I just found it useful as one piece of the optimization puzzle. I've been looking for something more comprehensive that shows the trade-offs between different pre-tax options in real-time.

How do we handle the expenses for equipment and software? We've been sharing the costs pretty informally. Do we need to track every single purchase?

You absolutely need to track every single purchase related to your YouTube work. Keep all receipts (digital or physical) and note which partner paid for what. The partnership should track all these expenses, even if they came from personal funds. For equipment and software, these are legitimate business expenses that can offset your income. Just make sure you're only deducting the business portion (if you also use things personally). You'll need to decide if certain equipment should be depreciated over time rather than expensed immediately - this depends on cost and expected useful life.

That's actually tax fraud and could get both of them in serious trouble. The IRS isn't stupid - they know people try these "creative" approaches. What you're describing is trying to avoid paying self-employment taxes and income taxes by mischaracterizing business income as gifts. The company clearly views them as a single business entity, which is why they're asking for one W-9. The proper way to handle this is exactly what the top comments suggest - file as a partnership, get an EIN, and each partner reports their share of income on their personal returns.

Does FreeTaxUSA handle business losses correctly though? I've heard mixed things about their self-employment features compared to TurboTax.

FreeTaxUSA has worked perfectly for my small business for the past two tax seasons. Their interface for business income and expenses is actually cleaner and more straightforward than TurboTax in my opinion. Their system for tracking loss carryforwards works well too - it automatically pulls the information from your previous year's return if you used them before, or you can enter it manually if you're switching from another service. The best part is they don't lock features behind paywalls or make you wait for "form availability" like TurboTax does.

I think this is the right answer! I had the exact same issue with a rental property I sold, and just marking it as "disposed" in TurboTax fixed everything. The software just needs to know you're not continuing with that business.

I haven't had anyone look at the QBI angle for my business specifically. Could you explain a bit more about what makes a SaaS qualify as non-service vs service? My platform is completely automated with very little direct customer support or customization.

For SaaS businesses, the distinction between service and non-service for QBI purposes comes down to whether your business relies on the reputation or skill of its owners/employees. Fully automated platforms with minimal human intervention tend to have a stronger case for non-service classification. Key factors that help qualify as non-service: if your software operates with minimal customization, if customers use it without your direct involvement, if it's standardized rather than tailored to specific clients, and if the value comes from the technology itself rather than your expertise. Your description of an automated platform with little customer support actually sounds promising for non-service classification. I'd recommend getting a tax professional to document these aspects of your business carefully, as qualifying for QBI at your income level could mean an additional $140k deduction (20% of your profit), which is substantial.

I've been using TaxSlayer for my S-corp for 3 years now (solo consultant). It's actually not that bad once you get used to it. The first year I had an accountant set everything up, then I just copied the structure for following years. Way cheaper than paying an accountant $2k+ annually.