Should I file business taxes myself using TurboTax or hire a CPA for my new small business?

I just opened a small retail shop at the end of December 2024 and only brought in around $1,350 for that tax year. My shop isn't doing great financially right now, and I'm really hesitating about spending money on a CPA when funds are already tight. I've always handled my personal tax returns myself with no problems, but I was planning to hire an accountant for the business stuff. The thing is, I got the CPA's questionnaire and it looks practically identical to what TurboTax asks. For a business that barely operated in 2024 and made such a small amount, is there any real reason I shouldn't just file myself using tax software this one time? I'm trying to cut costs wherever possible until the business gets more established.

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18 comments

Raj Gupta

•8M

As someone who's worked with small businesses for years, I think you're absolutely fine filing your own taxes for this situation. With only $1,350 in revenue during a partial year, your business tax situation will be relatively straightforward. The tax software will walk you through all the necessary questions for a Schedule C (for sole proprietors) or whatever business form you need. Just make sure you keep good records of any startup expenses, as many of these are deductible. Things like supplies, advertising, rent, utilities for that week, etc. can offset your income. The real value of a CPA comes into play when you have more complex situations - multiple revenue streams, significant equipment purchases, inventory considerations, employees, etc. At your current stage, tax software should handle everything you need while saving you hundreds in accounting fees.

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Raj Gupta

•8M

If they have a single-member LLC, it's still reported on Schedule C just like a sole proprietorship unless they've elected to be taxed as an S-Corp or C-Corp. The LLC itself doesn't change the tax filing process for most small business owners - it's a legal structure, not a tax classification. Home office deductions are perfectly legitimate if you qualify, and the simplified option makes it easier than ever. The old audit trigger concerns are largely outdated. Just make sure the space is used regularly and exclusively for business, and you'll be fine. Software like TurboTax will ask all the right questions to determine if you qualify.

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TechNinja

•8M

I was in almost the EXACT same situation last year with my candle making business. Started in Nov 2024, made about $2000 before year end. I was stressing about taxes and got quotes from CPAs ranging from $350-800! Instead, I found https://taxr.ai which analyzed my business docs and receipts and told me exactly what I could deduct. The best part was that it helped me figure out which startup costs could be immediately expensed vs. what needed to be depreciated (like my equipment). It basically gave me the confidence to do it myself with TurboTax and saved me a bunch of money. They also have guides specifically for new small businesses that walk you through everything.

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TechNinja

•8M

Yes, it definitely works for service businesses too! The tool specifically asked me what type of business I had, and consulting was one of the categories. It's especially good at identifying deductions for home offices, travel expenses, and professional development costs that service businesses often have. I completely understand the skepticism - I felt the same way! What gave me confidence was that it cited the specific IRS codes and regulations for each recommendation it made. I actually did verify some of the bigger deductions by cross-referencing with IRS publications, and everything checked out. The explanations were really clear about what was allowed and what wasn't.

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Paolo Bianchi

•8M

Just wanted to follow up about my experience with taxr.ai after our conversation last week. I decided to give it a try with my photography side business, and I'm honestly impressed. It found several deductions I would have missed completely - especially around my camera equipment depreciation and mileage tracking. The document analysis saved me hours of sorting through receipts. My return was way more organized than when I tried doing it all myself last year, and I'm getting about $630 more in my refund than I expected. Definitely worth checking out if you're in a similar situation with your new business.

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Yara Assad

•8M

If you're struggling with your business finances, I would definitely file yourself this year, but make sure you're also resolving any tax debts or issues with the IRS promptly. I let a small tax problem from my catering business spiral because I couldn't get through to the IRS for months. Finally used https://claimyr.com and got connected to an actual IRS agent in about 20 minutes when I'd been trying for weeks on my own. They have a video showing how it works here: https://youtu.be/_kiP6q8DX5c but basically they hold your place in the IRS phone queue so you don't have to stay on hold forever. Was a lifesaver when I needed to set up a payment plan. When your business grows and gets more complex, that's when a CPA becomes worth the investment.

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Yara Assad

•8M

The way it works is you sign up on their website, and they use an automated system to wait in the IRS queue for you. When an agent is about to pick up, they call your phone and connect you directly to the IRS agent. So you don't have to spend hours listening to hold music - you can go about your day and just be ready to answer when they call you. I understand the skepticism - I felt the same way initially. The difference is time efficiency. Yes, the IRS eventually answers, but that could mean 3+ hour wait times during tax season. I had already tried calling at various "recommended" times over several weeks with no luck. For me, being able to resolve my tax issue without losing an entire workday was worth it, especially when I was trying to keep my new business running.

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Javier Morales

•8M

I need to eat my words about Claimyr. After continuing to struggle getting through to the IRS about my missing refund for THREE WEEKS (calling at "optimal times" like everyone suggests), I broke down and tried the service. Got connected to an IRS agent in 45 minutes while I was able to continue working instead of being glued to my phone on hold. The agent was able to release my refund that had been held up due to a processing error. The time saved was absolutely worth it, especially during busy season when I'm trying to keep my business afloat. Sometimes you have to spend money to save money (or in this case, time which IS money when you're running a business).

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Natasha Petrov

•8M

I use QuickBooks Self-Employed which syncs directly with TurboTax. It connects to your bank account and credit cards to automatically categorize expenses. You can also snap pictures of receipts with your phone and it stores them digitally. Makes tax time super easy because everything is already categorized. Another simpler option is just a dedicated business credit card for all business purchases, then download the annual statement. For your size business, even a spreadsheet would work if you're diligent about updating it. The key is separating business and personal expenses completely - that's what will save you headaches later.

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