I've heard conflicting advice about this. Wouldn't having multiple LLCs mean multiple annual fees, multiple tax filings, etc? Is it really worth the hassle just to separate different types of business activities?

It does mean additional annual fees and separate tax filings, but those costs need to be weighed against your risk exposure. For lending activities specifically, the risks can be significant. If a loan goes bad and there's litigation, having that activity in a separate LLC helps shield your other assets and business ventures. The administrative overhead is something to consider, but most accounting software makes it fairly manageable to maintain separate books. Many states have reasonable annual LLC fees (though some like California are expensive). I've found the peace of mind worth the extra few hundred dollars annually. It's especially important if one activity is high-risk (like lending) while the other is relatively safe.

Texas is indeed pretty business-friendly. I changed my LLC from retail to consulting last year. You don't need to file any amendment with the Secretary of State unless you're changing the actual name of your LLC. The business purpose statement on Texas LLC forms is usually broad enough to cover almost any legal business activity.

Thanks for the info! That's a relief to hear. Did you have to update anything with the Comptroller's office for franchise tax purposes? I'm wondering if changing activities might affect how I file those reports.

Thank you for this advice - you're right that I should respond directly to this notice rather than assuming they'll eventually process the amendment. Did you have to get tax transcripts to resolve your situation? Someone else mentioned those and I'm not sure if I need them.

Yes, tax transcripts were really helpful in my case. They show exactly what the IRS has in their system versus what you filed. You can request them online through the IRS website or have your accountant get them. The transcript will show if your amended return is in their system and whether your $4k payment was properly applied. The other thing to consider is requesting a formal appeal or audit reconsideration. This creates a separate track for resolving your case rather than just waiting for the amendment to be processed, which can take forever. Your accountant should be familiar with this process. The key is to be proactive rather than reactive - don't just wait for the IRS to figure it out.

This is excellent advice. I'm a tax preparer and see this issue multiple times every tax season. The IRS computers just match document numbers, so if the cost basis isn't properly reported, they'll tax the entire proceeds as gain.

I used TurboTax to file my extension with payment last week and it went through without any issues. Their system is pretty straightforward for extensions. It costs like $49 but honestly it was worth it just for the peace of mind. The confirmation came through in about an hour.

Thanks for sharing your experience! Good to know TurboTax is working properly for extensions. I think I'll go that route since time is running out. At this point, the $49 is worth avoiding all this stress and potential late penalties if the extension doesn't go through properly.

Interesting! Does this work for the payment date field specifically? And did you leave the phone number field blank or fill it in?

That's super helpful! I'll check again tomorrow. Did you get any kind of email notification when it was uploaded or did you just happen to check and see it was there?

I didn't get any email notification, I just happened to check and it was there. I know some of my coworkers did get email notifications though, so it seems inconsistent. Might depend on what email preferences you have set up in the HR system. I'd recommend checking once in the morning and once in the evening rather than constantly refreshing. Their system gets really bogged down this time of year with everyone checking for their W2s.

Yep! This happened to me two years ago. My state withholding was completely wrong. I printed what was available and took it to HR, and they had to issue a corrected W2. Took almost 3 weeks to get the fix. I'd recommend comparing your last December paystub (with the year-to-date totals) to your W2 when it arrives to catch any errors early.

Wait really?? I do have some freelance income on the side of my regular job. So you're saying even though I'm extending my 2024 tax return, I still need to make my first quarterly payment for 2025 by April 18th? How do I even figure that out when I haven't completed last year's taxes yet??

Yes, that's exactly right. The extension only applies to your 2024 return, not to your 2025 estimated payments. It's super confusing and trips up a lot of people. For figuring out your 2025 quarterly payment, you can use last year's income as a basis (the safe harbor rule). If you pay 100% of what you owed last year (or 110% if your AGI was over $150,000), spread across your quarterly payments, you'll avoid penalties even if you end up owing more. You can always adjust later payments up or down as you get a better picture of your 2025 income.

This is technically true but still not a great idea. If you don't file or extend and then discover you actually DID owe money (like if you made a calculation error), you'll get hit with both failure-to-file AND failure-to-pay penalties, which add up fast. Plus, the statute of limitations for the IRS to audit you doesn't start until you file.