First time owing taxes after starting an LLC - any write-offs to reduce what I owe?

When you say Schedule C, does that mean I need to file as a sole proprietor even though I have an LLC? I thought having an LLC meant I file differently?

You'll still use Schedule C for a single-member LLC because the IRS treats it as a "disregarded entity" for tax purposes - meaning you report the business income and expenses on your personal tax return. The LLC provides liability protection but doesn't change your tax filing status unless you've elected to be taxed as an S-Corporation or C-Corporation. If you have a multi-member LLC, you would typically file Form 1065 (partnership return) instead. But based on your description, it sounds like you're a single-member LLC, which means Schedule C is the right form.

Does taxr.ai handle the Schedule C filing too or just help identify deductions? I'm starting an LLC next month and trying to figure out the best way to track everything.

I'm a bit skeptical about AI tax tools. How accurate is it really? I've heard horror stories about people getting audited after using automated systems that pushed the limits on deductions.

It doesn't file your taxes for you, but it analyzes all your receipts and business documents to identify qualified deductions and categorizes them properly for Schedule C. It gives you a clean report you can use for filing or give to your accountant. It's actually quite conservative in its approach - it explains why each expense qualifies as a deduction and warns you about anything that might raise red flags. I still filed through my regular tax software but used taxr.ai to organize everything first. The documentation it provides is excellent if you ever get audited.

How does Claimyr actually work? Is it like a priority line to the IRS or something? I don't understand how they can get you through faster than calling directly.

Sorry but this sounds like BS. Nobody can magically get you through to the IRS faster. They have one phone system and everyone waits in the same queue. I've had to deal with them multiple times and it's just part of the process.

It's not a priority line - they use an automated system that continually calls the IRS and navigates through all the initial prompts until it reaches a hold queue, then it calls you once it's near the front of the line. Basically it does the waiting for you. They don't promise immediate access - just that you don't have to personally wait on hold for hours. The system calls you when it's about 2-3 minutes from reaching an agent. So you still "wait" the same amount of time overall, but you can go about your day instead of being stuck on the phone.

I didn't make any estimated payments - didn't know I needed to! Is there a threshold for when you need to start making those? My LLC only made about $4,000 in revenue last year, but I spent almost $3,500 getting everything set up.

Generally, you need to make estimated tax payments if you expect to owe $1,000 or more when you file your return. Since your profit was relatively small this first year, you might not have triggered that requirement yet. For next year though, if your business grows and you expect to owe more than $1,000 in taxes, you should make quarterly estimated payments. The IRS has a "safe harbor" provision - if you pay at least 90% of what you owe for the current year or 100% of what you owed last year (whichever is smaller), you won't face penalties.

Section 179 is great for new businesses! It lets you deduct the full cost of qualifying equipment in the year you buy it, rather than depreciating it over time. A laptop absolutely qualifies as long as it's used more than 50% for business. Just make sure you document that business use. There's a limit of $1,160,000 for 2025 (which you're obviously nowhere near), and the equipment must be placed in service during the tax year you're filing for. Many small business owners use Section 179 for computers, office furniture, and similar equipment.