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I feel your pain, OP. The IRS is so understaffed and underfunded, it's ridiculous. We need to pressure our representatives to give them more resources so we don't have to deal with this bs.
I'm in the same boat, OP. Been trying to reach someone for weeks. This system is broken af š©
I feel your pain, OP. The IRS is seriously understaffed and overworked. It's not an excuse, but it explains why it's so hard to get through. Hang in there!
Yea, I heard they're still dealing with a backlog from the pandemic. Wild that it's taking this long to catch up š¤¦āāļø
PRO TIP: If you can't get through on the phone, try contacting your local Taxpayer Advocate Service. They can sometimes help push things along when you're stuck.
One thing nobody's mentioned - for contractors specifically, insurance rates can be different between LLC and LLP. Our insurance broker gave us a better rate on general liability and workers comp for our LLC versus what we would have paid as an LLP. Something to consider when making your decision since insurance is a major expense in contracting.
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.
Don't forget about self-employment taxes! With both LLC and LLP taxed as partnerships, you'll pay self-employment taxes (15.3%) on your entire distributive share. Once you're making decent money, you might want to consider having your LLC elect S-Corp taxation status to potentially reduce those taxes. My contracting business started as an LLC partnership but we switched to S-Corp taxation after hitting about $200k in profits. Saved us thousands in SE taxes while maintaining the liability protection of the LLC structure.
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?
Mateo Perez
Has anyone tried reaching out to their congressperson? I've heard that can sometimes help with IRS issues.
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CosmicCrusader
ā¢How do you even do that? Just call their office?
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Aisha Rahman
ā¢Yep, just look up your rep's website and there should be a 'Contact Us' section. They usually have staff dedicated to helping with federal agency issues.
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Ethan Brown
Anyone else think its crazy that we have to jump through so many hoops just to get our own money back? The whole system needs an overhaul smh
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Yuki Yamamoto
ā¢Preach! š It's like they forget it's OUR money in the first place.
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