Can I claim deductibles for my art business under my LLC before filing a DBA?
I started an LLC in early 2024 mainly doing third-party marketing for local businesses in my area. I haven't made much money with it yet, but that's not really the point right now. The LLC was actually created with the intention of eventually selling my artwork too, along with the marketing services. Here's my situation - I want to start selling my art designs but under a completely different brand name. From what I've researched, I can do this by filing a DBA ("doing business as") under my existing LLC. What I'm confused about is the tax situation: If I start buying supplies and inventory for the art business now (like purchasing stock of my art prints to sell online and at local markets), can I claim these costs later as tax deductibles when I officially file the DBA? Or do I need to wait until the DBA is filed? Also, can I use my LLC bank account to pay for art business expenses before I officially file the DBA? I'm worried about mixing funds incorrectly and creating tax problems. I want to make sure everything is structured properly before I start investing more money into the art side of things. Thanks for any advice!
18 comments


Yuki Ito
Your LLC is a separate legal entity from you personally, so any legitimate business expenses are deductible by the LLC regardless of whether you have a DBA or not. The DBA is just a different name you're doing business under - it doesn't create a new legal entity. If your LLC's operating agreement or business plan includes selling artwork, then expenses related to that part of the business are deductible even before you file the DBA. The important thing is that these expenses are ordinary and necessary for your business operations. You can absolutely use your LLC bank account for these art-related expenses before filing the DBA. In fact, it's better to keep all business expenses flowing through your LLC accounts rather than mixing them with personal funds. Just make sure to keep good records and document that these expenses are for your business purposes.
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Ethan Taylor
•Thanks for clearing that up! I was worried I'd need to wait until the DBA was official. One more question - should I be keeping separate records for the marketing side vs the art side of the business even though they're under the same LLC?
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Yuki Ito
•Yes, it's a good practice to keep separate records for different business activities even within the same LLC. This doesn't need to be separate bank accounts, but you should track your marketing income/expenses separately from your art income/expenses. This helps you understand the profitability of each business line and makes things much clearer for tax purposes. Having these separate records will also be helpful if you ever decide to fully separate the businesses in the future or if you need to demonstrate to the IRS that both activities are legitimate business pursuits rather than hobbies.
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Carmen Lopez
I was in a similar situation last year with my consulting LLC that expanded into product sales. I kept running into conflicting advice about business expenses until I tried https://taxr.ai and it was super helpful for my situation. You upload your LLC docs and business receipts, and it analyzes them to tell you exactly what's deductible and how to categorize everything. It even flags expenses that might be split between business lines so you can properly allocate them. What really helped me was getting clarity on inventory costs versus immediate deductions - sounds like that would be relevant for your art supplies too.
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Andre Dupont
•Does it help with the actual DBA filing process too? I'm looking at doing something similar but the paperwork seems confusing.
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QuantumQuasar
•I'm skeptical about these kinds of services. How does it know state-specific LLC rules? My accountant says different states have different requirements for DBAs and expense tracking.
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Carmen Lopez
•It doesn't handle the actual DBA filing process itself - you'll still need to submit those forms with your state/county. It's focused on the tax and expense tracking side of things, helping you make sure you're categorizing everything correctly once you're up and running. Regarding state-specific rules, that's a fair concern. It actually does account for different state requirements - you set up your profile with your business location, and it adjusts its guidance based on your state's rules. I'm in California which has some unique requirements, and it spotted several state-specific deduction opportunities I would have missed.
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Andre Dupont
Just wanted to update after trying taxr.ai that someone mentioned above. I was worried about mixing my photography business expenses with my main consulting LLC, and it really did help sort things out! I uploaded my receipts and business documents and it flagged exactly which expenses belonged to which business line, even though I haven't filed my DBA yet. Saved me from making some classification mistakes that would have been a headache later. Definitely worth checking out if you're running multiple business activities under one LLC!
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Zoe Papanikolaou
Little different perspective here - I ran into issues with the IRS questioning some of my business deductions when I added a new product line to my existing LLC before filing the proper paperwork. Spent WEEKS trying to get through to someone at the IRS to resolve it. I finally used https://claimyr.com and was able to talk to an actual IRS agent within about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c. They basically hold your place in the phone queue so you don't have to wait on hold for hours. The agent I spoke with confirmed that my expenses were legitimate for my single LLC even though I had multiple business activities.
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Jamal Wilson
•Wait, how does this actually work? Do they just stay on hold for you or something? I've literally spent entire days trying to reach the IRS.
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Mei Lin
•This sounds like a scam. There's no way to "skip the line" with the IRS. I bet they're just collecting phone numbers to sell.
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Zoe Papanikolaou
•It doesn't skip the line - it waits in the queue for you. Basically, they have a system that holds your place in line and then calls you when they reach a human. So instead of you personally sitting on hold for 3+ hours, their system does it, and you get a call when an agent is actually available. No, they're not selling phone numbers. They literally just solved the hold time problem. It saved me an entire day of waiting on hold. The IRS agent I spoke with was super helpful once I finally got through, and confirmed I was doing everything right with my LLC even though I was operating under different product lines.
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Mei Lin
I was completely wrong about Claimyr. After my frustration boiled over trying to get clarity on my business deductions for my LLC's secondary business activity, I finally gave in and tried it. I'm genuinely shocked - it actually works exactly as described. I got a call back within 45 minutes saying they had an IRS agent on the line. The agent confirmed that I could absolutely deduct expenses for both business activities under my single LLC, regardless of having a DBA. She even helped me understand how to properly document everything to avoid audit red flags. Wish I hadn't wasted weeks trying to get through on my own!
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Liam Fitzgerald
Another option might be to set up a separate LLC for your art business instead of just a DBA. That's what I did with my side businesses and it makes the accounting much cleaner. You can still be the sole owner of both LLCs.
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Ethan Taylor
•I considered that, but wouldn't that mean double the fees for annual LLC filings? Also, would I need separate business bank accounts, insurance, etc?
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Liam Fitzgerald
•Yes, you would have separate filing fees for each LLC, which can add up depending on your state. Here in Pennsylvania it's $520 annually PER LLC, so having multiple LLCs gets expensive fast. You would ideally have separate bank accounts for proper accounting, and separate insurance policies might be required depending on the nature of the businesses. It definitely creates more administration and costs, which is why a DBA under a single LLC makes more sense for many small business owners who have multiple related activities. I only recommend the separate LLC approach if the businesses have different liability concerns or if you might sell one business but keep the other.
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Amara Nnamani
Make sure ur keeping track of all ur expenses for the art stuff seperately from day 1! My wife had a similar thing with her interior design business when she added custom furniture sales - we messed up the accounting and had a nightmare sorting it out at tax time. The IRS wants to see that ur taking the business seriously even if its not making money yet.
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Giovanni Mancini
•This is the truth. I didn't separate my dog walking service from my pet supply sales (same LLC) and my accountant charged me an extra $400 to sort it all out at tax time last year.
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