Does having a separate business card affect your credit score? I'm worried about opening new accounts.

It might cause a small temporary dip when you first apply due to the credit inquiry, but in the long run it can actually help your score by increasing your total available credit (assuming you maintain low utilization). I just got a second personal card that I use exclusively for business - you don't need an actual "business credit card" if you're a sole proprietor. The organization benefits are huge though. At tax time, I just download my annual statement and everything's already separated. You also look more professional to the IRS if you keep business and personal expenses clearly separated. My accountant said mixing personal and business expenses on the same cards/accounts is one of the biggest red flags for Schedule C audits.

Etsy fees should go under "Commissions and fees" on line 10 of Schedule C. This is the correct category for marketplace selling fees. The payment processing fees (the percentage they take from each sale) also go here.

Thank you so much for this specific advice for Robinhood! I just sent the email with that exact subject line and all the details you mentioned. I don't have Twitter but might create an account just for this purpose if I don't hear back soon. Did you have to wait long after sending the email before they responded? I'm getting really nervous as the deadline gets closer.

I got a response within 2 business days to the email. The Twitter route was actually faster - got a response same day, though it took about 3-4 days total to fully resolve the issue. They'll likely ask you to resubmit the form through their secure message center inside the app, which is fine. The important thing is getting your case flagged in their system so it doesn't just sit in the general queue. Once the right department has it, they're actually pretty efficient.

I've had success with this approach too. Most brokerage agreements have an arbitration clause, and just mentioning that you're "reviewing the dispute resolution section of your account agreement" can suddenly make things move much faster. They don't want to deal with the hassle and cost of formal arbitration.

Wouldn't insurance be a cheaper solution than maintaining multiple LLCs though? Like getting a good general liability policy plus specific riders for the higher-risk activities?

You raise an excellent point about insurance. A comprehensive liability insurance policy with specific riders for higher-risk activities is often a more cost-effective solution than maintaining multiple LLCs with separate filing fees, registered agent fees, and accounting costs. The ideal approach for many entrepreneurs is a combination: one well-structured LLC with proper internal bookkeeping to track each business activity separately, plus tailored insurance coverage that addresses the specific risks of each business type. This gives you both liability protection and tax efficiency without the administrative burden of multiple entities.

Do you use accounting software to track everything? I'm trying to figure out if I need separate QuickBooks accounts or if there's a way to tag transactions by business type within one account.

That's a really good point I hadn't considered! I did spend about $350 on shipping everything to the refiner since some of the materials were pretty heavy. And there was a small assessment fee they charged before processing. I'm guessing those would go under "shipping" and "professional services" on Schedule C?

Exactly right. The shipping costs would go under "shipping and delivery" expenses on Schedule C, and the assessment fee would typically go under "professional services" or possibly "fees" depending on the nature of the charge. Don't forget to also include any other closing costs you incurred - things like final utility payments for your workspace, any termination fees for services or rentals, and even costs for storing business records. These are all legitimate business expenses in the year you close shop. Every deduction helps offset that final tax bill!

When I closed my business last year, I had to check a box on Schedule C indicating it was my final return for this business. I think it's in the top section near where you enter your business name and info. There's literally a box that says "If this is your final return, check here" or something similar.

What kind of records should we keep specifically? Just the final sales paperwork or are there other documents that are important for tax purposes?

You should keep the purchase agreement that shows the price of the vehicle and a clear breakdown of the sales tax paid. Also keep any documentation of registration fees, though these are typically only deductible if they're based on the value of the vehicle rather than a flat fee. If you paid cash, keep bank statements showing the withdrawal. If you financed, keep the loan agreement and records of payments. Also hang onto any receipts for major repairs or improvements, especially if there's any chance you might use the vehicle partially for business in the future.

I used both this year (started with H&R then switched to TurboTax) and they handle it pretty much the same way. Both ask about large purchases to check if sales tax itemization would benefit you. TurboTax maybe explains it a bit clearer but the end result was identical for me.