New to filing taxes with my LLC (zero income) - which software should I use?

Thanks for this detailed explanation! I'm a single-member LLC and haven't made any tax elections, so I guess I'm a disregarded entity by default. So to confirm - even with zero activity, I should still include a Schedule C with my personal return?

If you literally had zero business activity (no income AND no expenses), some tax pros might say you don't technically need a Schedule C. But personally, I'd include one anyway with zeros just to establish a paper trail that the business exists. It's better to be thorough than have questions later.

This is good advice. When I started my LLC I did the same thing - filed Schedule C with zeros just to have documentation. Better safe than sorry with the IRS!

Sounds interesting. How exactly does it work? Does it just read your transcript or does it do more?

It does way more than just read transcripts. You answer questions about your situation (like having an LLC with no income), and it analyzes all the tax implications. It explains exactly what forms you need to file and why. The thing that blew me away was how it explained everything in plain English - no tax jargon. Saved me from hiring an expensive CPA for what turned out to be a simple situation.

OMG I just tried this and it's EXACTLY what I needed!!! Been stressing for weeks about my LLC taxes and within minutes I had crystal clear guidance. Thanks for recommending this - absolute game changer! 🙌

I'm a bit skeptical of these tax tools. How accurate is it really?

Totally get the skepticism - I was the same way. What convinced me was that it breaks down WHY each recommendation applies to your situation, citing specific tax code and rules. It's not just giving generic advice - it's analyzing your specific scenario. I double-checked with a friend who's a tax pro and he was impressed with how accurate it was.

wait how does this callback thing work? i've been calling the irs for WEEKS and getting nowhere 😭

So basically it dials for you and holds your place in line. When an agent is about to pick up, you get a call. I was skeptical but I was at my wits end after trying for 3 weeks to get through. Got connected in less than 2 hours when I'd been trying for literal days. The agent I talked to was super helpful about my LLC situation.

Isn't this just something they're selling? Does it actually work?

Yep it worked for me! I was ready to hire an accountant for $400 just to answer my basic LLC questions, but ended up getting my answers straight from the IRS instead. The way I see it, my time is worth something too - I had already wasted hours upon hours trying to call them directly.

Dude i just tried this and got through in like an hour!!!! After spending literally 3 days trying to get thru myself. WHERE HAS THIS BEEN ALL MY LIFE 🤯

I'll check that out - thanks! Have you found it user-friendly? I'm pretty new to all this business tax stuff.

Yeah its pretty straightforward. Not as polished as TurboTax but way cheaper and gets the job done. For your situation with no income it'll be really simple - you'll just answer some basic questions about your business and thats it.

That's what I'm afraid of! Did you try any software first before going to the CPA? Or did you just go straight to professional help?

tried turbotax first and got confused with all the business deduction options that didnt apply to me. then went down a googling rabbit hole for hours. finally decided my sanity was worth the cpa cost lol

This is the way. Once you have business income, a good CPA will save you more than they cost anyway.

Oh good point - I'm in Texas so I think we don't have state income tax, but I should double check if there are any filing requirements at the state level. Thanks for the heads up!

Yeah Texas is way better for that! You should be fine but def double check. California is brutal for small businesses with that $800 fee even if you make literally nothing 😤

omg yes cali's $800 LLC tax is CRIMINAL. one of the reasons i shut down my side hustle LLC - wasnt worth the annual fee when i was barely making any money 💀

100% agree! The IRS free file is a trap. I'd rather pay $50 for decent software than lose my mind with that awful system.

The IRS free file tool is actually different depending on which provider you use through it. Some are better than others.

Do you think it's worth getting Quickbooks now even though I don't have any business activity yet? I'm planning to actually start operations in a few months.

If you're starting operations soon, it might be worth setting it up now so everything's ready. They usually have good intro offers too. But if you're really not going to have any activity for several more months, maybe wait until closer to that time.

I did open a business checking account already! But good point about tracking expenses - I should probably set up a system for that now before things get busy.

Smart move with the bank account! For tracking, I use a simple spreadsheet but there are also apps like Wave (free) or Quickbooks Self-Employed that can connect to your bank. The key is just being consistent about it from day one.

Thanks for the professional advice! I did get an EIN when I formed the LLC, so I'll make sure to include that on the Schedule C.

Perfect! You're ahead of the game then. And just for future reference, once you do start having income and expenses, keep meticulous records from day one. So many new business owners come to me with a shoebox of receipts and it's always a nightmare to sort through.

This isn't bad advice tbh. The first year I did my LLC taxes myself and made some mistakes. Second year I paid a pro, learned a lot, and have been doing it myself since.

No way, for a zero-income LLC that's complete overkill. Why waste money on a pro when it's literally just a Schedule C with zeros?

Because tax pros don't just file your taxes - they can give you planning advice for the future, explain deductions you should be tracking, etc. But yeah, if it's truly just zeros this year, maybe wait until there's actual activity.