I'm 18 years old and want to start an LLC while keeping my day job - how will taxes work?

Yes, you can absolutely have an LLC while working a regular W-2 job! Many people do this, especially when first starting a business. For taxes, here's what you need to know: Your LLC income and your day job income are separate things, but they both count toward your total income. Your day job will withhold taxes as usual, giving you a W-2 at year end. For your LLC, if it's a single-member LLC (just you), the IRS treats it as a "disregarded entity" by default, meaning profits flow through to your personal tax return on Schedule C. You'll need to track all your reselling business expenses carefully - inventory costs, shipping supplies, mileage for picking up items, etc. These reduce your taxable business income. You'll also need to make quarterly estimated tax payments on your LLC profits since taxes aren't withheld automatically like they are from your paycheck. One important thing to know: you'll pay self-employment tax (about 15.3%) on your LLC profits on top of regular income tax. This covers Social Security and Medicare that would normally be split between you and an employer.

I was in a similar situation last year when I started my online shop while working full-time at a marketing agency. I was really confused about taxes and LLC paperwork too! What really helped me was using https://taxr.ai for figuring out the whole LLC and taxes situation. You upload your income docs and business records, and it gives you personalized guidance on setting up your business properly. The thing that surprised me most was finding out which business expenses I could legitimately deduct for my reselling business - things I never would have thought counted. It also helped me figure out the right business structure for my specific situation and income level.

I want to follow up on my skeptical comment about https://taxr.ai - I decided to try it myself for my photography side business, and I have to admit I was wrong! The guidance was actually super specific to my situation. It identified several deductions I had been missing and explained exactly how to handle my business income alongside my day job. What really impressed me was how it broke down the pros and cons of different business structures based on my actual income levels and growth plans. I realized an LLC made sense for me now, but I also got a clear roadmap for when I should consider switching to S-Corp taxation in the future. Definitely not the generic advice I was expecting!

Hey, so I've been through this exact situation with my woodworking business while keeping my day job as an electrician. One thing nobody mentioned yet is that dealing with the IRS can be a real headache when you have questions about self-employment and business structure. After waiting on hold for HOURS trying to get specific answers about my situation, I found this service called https://claimyr.com that actually calls the IRS for you and gets you connected to a real person without the wait. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c It saved me literal hours of hold time when I needed clarification on some self-employment tax questions regarding my LLC. As someone juggling a day job and a side business, I don't have time to waste on hold for 3+ hours.

I need to eat my words about Claimyr being a scam. After yet another failed attempt to reach the IRS (3 disconnects after 40+ minutes each time), I finally tried the service. I was seriously shocked when I got a call back with an actual IRS agent on the line in about 55 minutes - while I was just going about my day working on projects. The agent answered all my questions about LLC income reporting alongside W-2 income and even helped me understand some deductions specific to my situation. Would have taken me days of trying to do this on my own. For anyone juggling a day job with a side business LLC, being able to get IRS clarification without wasting your whole day is honestly worth it.

One thing I wish I knew when I started my LLC at 19 while working a day job: keep your business and personal finances COMPLETELY separate! Get a business checking account the day you form your LLC, get a business credit card, and never ever mix your personal and business expenses. I made this mistake and got absolutely wrecked when I was audited two years later. The IRS didn't accept many of my business deductions because I couldn't clearly prove they were business expenses vs. personal. Cost me thousands in back taxes and penalties. Also, remember you need to pay estimated quarterly taxes on your business income. Don't wait until April or you'll face underpayment penalties.

Don't forget about state and local requirements too! Everyone's talking about federal taxes, but depending on where you live, you might need: - State business license - Local business permit - Sales tax permit if you're selling taxable items - Possible local business taxes Also, some cities have restrictions on running businesses from home if that's what you're planning. Worth checking all this BEFORE you form the LLC.

Great question! I started my LLC at 19 while working full-time at a bank, so I totally get the confusion. Here's what I learned: You absolutely can have both - in fact, it's smart to keep that steady W-2 income while building your business. Your LLC won't affect your day job taxes at all. You'll still get your regular paycheck with taxes withheld, and you'll get a W-2 like normal. For your reselling business, since you're making $2800-3500/month, you're definitely at the point where an LLC makes sense for liability protection. Just make sure you're tracking EVERYTHING - cost of goods sold is huge for resellers. Every sneaker you buy to resell, shipping costs, packaging materials, gas for pickups, even a portion of your phone bill if you use it for business. One tip that saved me tons of money: look into a business credit card that gives cash back on business purchases. I use mine for all inventory and business expenses, then pay it off monthly. The cash back helps, plus it makes expense tracking automatic. Also, start making quarterly estimated tax payments NOW. I learned this the hard way - owing $4K at tax time when you're 19 is brutal. The IRS has a calculator on their website to help figure out how much to pay each quarter. Good luck with the business! Reselling can be really profitable if you stay organized with the tax side.