I might have a different perspective than others here. I explored the multi-entity structure with IP holdco for my software business ($600K revenue) and ultimately decided AGAINST it. The annual compliance costs and complexity weren't worth the tax savings for me. Instead, I focused on maximizing other tax strategies like R&D tax credits, which gave me about $47K in tax savings last year with much less overhead. Sometimes simpler is better, especially at our size. Once I hit $2M+ in revenue, I'll reconsider the more complex structure.

As someone who's been through this exact decision process, I'd suggest starting with a comprehensive analysis of your specific situation before jumping into any complex structure. At $750K revenue, you're right at the threshold where it could make sense, but the devil is really in the details. A few key questions to consider: What's your current effective tax rate? How much of your revenue comes from IP licensing vs. direct software sales? Are you planning significant growth in the next 2-3 years? The answers will heavily influence whether the complexity is worth it. For what it's worth, I started with a simpler structure (single LLC with good tax elections) and gradually added complexity as my business grew. Sometimes it's better to implement these changes in phases rather than trying to build the perfect structure from day one. You can always restructure later when the tax savings clearly justify the additional overhead. Also worth noting - make sure you have a solid business reason for the structure beyond just tax savings. The IRS looks much more favorably on arrangements that have legitimate business purposes like asset protection, operational efficiency, or risk management.

Check if you got any letters in the mail. My 570 was bcuz they needed to verify my identity

I'm going through the exact same thing! Had N/A for almost 2 months and just got the 570 code this week. From what I've researched, it usually means they're doing some kind of review but at least our returns are finally being processed. Trying to stay patient but it's so hard when you're counting on that refund 😅

Quick question - does anyone know if leasing avoids this whole tax credit problem? I've heard that with leases, the leasing company can take the tax credit and pass the savings on to you in the form of a lower monthly payment, regardless of your tax situation. Is that true for 2024?

I was in exactly your situation a few weeks ago - AGI around $60k and stressed about whether to wait for Tesla's point-of-sale option or just buy now. Here's what I learned after doing a ton of research: With your $65k AGI, you'll almost certainly have enough tax liability to use the full $7,500 credit when you file your 2024 taxes. The standard deduction for 2024 is $14,600 (assuming you're single), so your taxable income would be around $50,400. The tax on that income will definitely exceed $7,500, so you won't lose any of the credit by taking it on your return instead of at point of sale. The real question is cash flow - can you afford the extra $7,500 upfront and wait until next tax season to get it back? If so, I'd say go ahead and buy now. Tesla's pricing has been pretty stable lately, but there's always the risk of price increases if you wait. I ended up purchasing my Model Y in March and claiming the credit on my taxes. No regrets - the peace of mind was worth more than potentially saving a few months of waiting for a point-of-sale option that may or may not come soon.

Has anyone here actually received their sales tax permit deposit back? My state (Florida) promised a refund after 3 years too, but when the time came they claimed I had filed one of my monthly returns 2 days late in year 2, so they kept the entire $500 deposit. Wondering if this is common practice.

Great question! I went through this exact same situation with my LLC last year. The advice about treating it as an asset is spot on - don't expense it initially since you're expecting to get it back. I set up a "Deposits - Refundable" asset account in my accounting software and recorded the $500 there. One thing I'd add is to keep really good documentation about the deposit terms and your compliance with the requirements. Take screenshots of your filing confirmations, payment receipts, etc. Some states are pretty strict about the "good standing" requirements and will keep your deposit for minor issues. Also, if you're using QuickBooks, you can set up a reminder for when the 3-year period is almost up so you can proactively follow up on getting your refund rather than waiting for them to process it automatically.

Pro tip for dealing with CP 11 notices: ALWAYS keep a copy of your original tax return handy! I make PDFs of everything before submitting. Makes it so much easier to compare line-by-line with what the IRS is saying when you get one of these notices. Just saved me tons of time figuring out where my math apparently went wrong on my student loan interest deduction.

I went through this exact same situation about 6 months ago! Got my CP 11 notice and immediately panicked thinking I was in huge trouble with the IRS. Turns out it was just a simple calculation error on my Earned Income Tax Credit - I had miscalculated my qualifying income by including some unemployment benefits that shouldn't have been counted. The notice looked really intimidating at first, but once I sat down and compared it line by line with my original return, I could see exactly what they were talking about. The IRS explanation section actually does a decent job of breaking down what they changed, even though the language can be confusing at first glance. I ended up agreeing with their calculation and just paid the $430 difference online through the IRS website. The whole thing was resolved within a week and I haven't had any issues since. Don't stress too much about it - these math error notices are super common and definitely not the same as being audited. Just take your time reviewing the numbers and you'll figure out what happened!