Do you know if there's a limit to how many conferences you can attend and deduct each year? I've gone to like 4 already this year and wondering if that looks suspicious.

There's no specific limit on the number of conferences you can attend and deduct. The key test is whether they're "ordinary and necessary" for your business. If you can justify why each conference provides value to your specific business operations, then multiple conferences can be legitimate. However, if the conferences all cover very similar content, or if some seem only tangentially related to your business, that might raise questions. The IRS might look more closely if the pattern suggests the conferences are primarily for personal enjoyment rather than business development. Quality documentation of the business purpose for each one becomes even more important when you attend multiple events.

Yes, you'd need to allocate. If you would have gotten a single hotel room anyway, you can deduct the full room cost. But their flight, their meals, and any increase in room cost for double occupancy wouldn't be deductible.

What about VAT/sales tax collection though? That seems like a legitimate reason to use these services - handling all the state-by-state sales tax requirements in the US is a nightmare for foreign businesses.

Sales tax collection is indeed one of the few legitimate benefits these services can provide. The US sales tax system is notoriously complicated with different rules across 50 states plus local jurisdictions. Having a US entity handle that complexity can be valuable. However, there are specialized sales tax compliance services that can handle just this aspect without the problematic "company rental" structure. Services like Avalara or TaxJar can manage US sales tax compliance for foreign companies at a much lower cost than these rental arrangements. You'd still need to register for sales tax in relevant states, but these specialized services can handle the calculation, collection and filing without the questionable tax structure these rental companies use.

Did setting up a proper LLC end up being much more expensive than the rental option? These services charge like $500/month which seems steep but cheaper than maintaining a full legal entity with annual fees, registered agent, etc.

5 Wait, so heavier vehicles get better tax treatment? That seems backwards from an environmental perspective. Why would the tax code incentivize bigger vehicles?

14 Yes, vehicles over 6,000 pounds gross vehicle weight rating (GVWR) are classified as heavy SUVs, trucks, or vans for tax purposes and aren't subject to the same luxury auto depreciation limits. This was originally intended for businesses needing work trucks, but it created a loophole that benefits larger personal vehicles used for business. You're right that it seems environmentally backwards. It's one of those tax provisions that has unintended consequences. The luxury auto limits were created in the 1980s to prevent businesses from deducting expensive sports cars, but the weight exception has ended up incentivizing larger vehicles. Congress has discussed changing this in recent years, but nothing has changed yet.

19 This is super helpful, thanks! If the car has actually increased in value since I bought it (crazy used car market last couple years), I would still use my original purchase price, right?

Do you feel like it finds all the possible deductions? That's my main worry - missing out on money I should be getting back.

It walks you through all possible deductions and credits with a comprehensive questionnaire just like the expensive services do. For someone in your situation, it asks about education expenses, student loan interest, retirement contributions, and other common deductions. I actually found FreeTaxUSA to be more transparent about explaining which deductions you qualify for compared to TurboTax. They don't hide information behind paywalls or try to upsell you constantly. Every time I've compared my results between multiple tax programs, the refund amount has been identical because ultimately it's all based on the same tax laws.

I don't completely agree. While the tax code is the same, different software definitely asks different questions which can lead to finding deductions someone might miss. I've personally gotten different results between programs.

Direct File is only for simple personal returns right now, not for business returns or extensions. For your 7004, you'll need to either use commercial tax software, have your accountant e-file it, or mail in a paper form. I've been using FreeTaxUSA for my S Corp returns for years - they handle the 7004 extension filing too and it's pretty straightforward.

Thanks for clarifying! I'll stick with my regular tax software then. Wish the IRS would expand these services to small businesses too.

Most COVID-related tax provisions have expired now. For the 2025 filing season (2024 tax year), things have largely returned to pre-pandemic rules. Employee Retention Credits ended, PPP loan forgiveness is old news, and the special sick leave credits are gone. The only lingering effects might be if you're still carrying losses forward from the pandemic years, but the special expanded rules for those have mostly reverted to normal too.