Single member LLC: Are my 1099s and W2 redundant for filing taxes?

8 This is helpful but I'm still confused on one point. When I list my salary as an expense on Schedule C, do I need to include a specific form for that? And does this mean I'm essentially paying less in taxes overall since not all the business income gets hit with self-employment tax?

12 You'll include your salary expense on Schedule C line 26 "Wages." You don't need to attach a special form for this - the payroll records you keep are your backup documentation. Yes, this structure can potentially reduce your overall tax burden. When you're just a sole proprietor receiving 1099 income, all your profit is subject to self-employment tax (15.3%). But in your setup, only the business profit remaining after your salary is subject to self-employment tax. Your salary is subject to FICA taxes (also totaling 15.3%, but split between employer and employee portions). So the total tax rate is similar, but you gain other benefits like better retirement options and potentially better audit protection.

14 Did they actually help with filing or just provide advice? I'm using QuickBooks for my LLC accounting but still struggle with how everything should flow from business to personal returns.

19 Are you sure this isn't double taxation though? I'm getting conflicting advice from my accountant who says I should just disregard 1099s and only report W2 income if I'm paying myself through payroll.

5 They provide document analysis and specific tax guidance - pointing out exactly where everything should go on your returns. You still do the filing yourself or with your existing tax software, but with much clearer instructions. It integrates with QuickBooks too - I connected mine and it pulled all the categorized expenses right in. Your accountant is incorrect - you absolutely need to report all 1099 income on Schedule C. However, you then deduct the salary you paid yourself as a business expense, which is why it's not double taxation. The total income gets reported, but the portion you paid as salary gets deducted from business profit, then appears as W-2 income. The IRS wants to see both.

3 How does this actually work? Sounds like you're paying for something the IRS should provide for free. What makes this any different than calling myself and waiting?

19 This sounds like a complete scam. No way they can get you through faster than anyone else. The IRS phone system is notoriously awful for everyone.

7 It uses their callback system technology. Instead of you waiting on hold, their system does it for you and calls you when an actual IRS agent is on the line. It saves hours of hold time - the difference is you're not personally waiting on the phone. It's definitely not a scam. I was super skeptical too, but it actually works. The IRS phone system has certain times and patterns when agents become available. Their system knows these patterns and keeps dialing at optimal times until it gets through. Then it connects you immediately. I was surprised how well it worked after failing to get through on my own for several days.

1 I've heard about the S-Corp option but wasn't sure if it was worth the extra paperwork and compliance requirements. What income level do you think makes the S-Corp election worthwhile? And did you need to hire a specialized accountant to handle it?

22 Most tax professionals suggest considering S-Corp election when your business profit exceeds about $40,000-$50,000 annually. That's typically where the self-employment tax savings outweigh the additional costs of compliance. I did hire a specialized accountant because the S-Corp has more filing requirements including an annual 1120S corporate return. The costs run me about $1,200 annually for tax preparation, but I save around $4,000 in self-employment taxes, so it's definitely worth it. You'll also need to run regular payroll and maintain more formal business documentation, but the tax savings can be significant once your business is consistently profitable.

11 I used TurboTax Self-Employed last year for my single-member LLC with both 1099s and W-2 (I pay myself). It worked well and walked me through reporting the 1099 income on Schedule C, entering business expenses (including my salary to myself), and then separately entering my W-2. Just make sure you enter your salary as a wage expense on Schedule C - this is critical to avoid double taxation.