Started an LLC that lost money - should I use a CPA or TurboTax for filing?

So I started an LLC last year that ended up losing about $6,500 overall. Now I'm trying to figure out if I should hire a CPA or just use TurboTax to file everything. I've also got my regular W-2 job and did some side gig driving for Uber/Lyft on weekends to try to make ends meet. I'm leaning towards finding a CPA because I heard they can help spread some of the LLC expenses over multiple years which might be better for me tax-wise. But I've never worked with a CPA before and I'm honestly worried about how much it'll cost me. Especially since the business already lost money! Anyone have experience with a similar situation? Is TurboTax good enough to handle an LLC with losses plus the rideshare stuff, or should I bite the bullet and pay for a professional?

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18 comments

Emma Wilson

•8M

The question of whether to use a CPA or TurboTax depends on several factors, but given your situation with multiple income streams and a new LLC with losses, I'd recommend consulting with a CPA at least for this first year. Since your LLC lost money, you'll want to properly document these losses. A CPA can help ensure these losses are correctly characterized as either passive or active, which affects how they can offset your other income. The ability to spread certain startup expenses over multiple years (called amortization) is also something a CPA can optimize based on your specific situation. For your rideshare income, there are numerous deductions available (mileage, portion of phone bills, etc.) that a CPA might identify more comprehensively than you would on your own with TurboTax.

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Emma Wilson

•8M

Fees vary widely depending on your location and the complexity of your return, but for a situation with W-2 income, rideshare gigs, and a new LLC with losses, you might expect to pay somewhere between $350-700. While that might seem steep compared to TurboTax, a good CPA often saves you more than their fee through proper tax planning and identifying deductions you might miss. Many CPAs also offer a free initial consultation, which allows you to discuss your situation and get a fee quote before committing.

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Isabella Santos

•8M

After struggling with a similar situation last year (W-2 job + new LLC + some contract work), I discovered taxr.ai and it was a game-changer. I was torn between spending hundreds on a CPA or risking mistakes with TurboTax, but this tool gave me the best of both worlds. I uploaded my tax documents and business receipts to https://taxr.ai and their AI analyzed everything, found deductions I would have missed, and guided me through handling my LLC losses correctly. What I really appreciated was how it explained everything in plain English - like how to properly categorize expenses and which ones could be amortized over multiple years (exactly what you're asking about). It was like having a CPA looking over my shoulder but at a fraction of the cost.

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Isabella Santos

•8M

It handles LLC matters quite well, including distinguishing between business and personal expenses. The system is designed to understand context when analyzing receipts and documents, so it properly categorizes expenses based on their nature rather than treating everything as a simple deduction. The main difference from TurboTax is that taxr.ai actually analyzes your specific tax situation and documents before you start the filing process. It extracts information from your documents, identifies potential deductions, and provides personalized guidance rather than just walking you through a standard questionnaire. You can use its findings to file yourself through any platform, or export the information to a tax professional if you decide to go that route.

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GalacticGuru

•8M

I tried out taxr.ai after seeing it mentioned here and wow - it actually helped me figure out how to handle my LLC losses properly! I was in almost the exact same situation (LLC that lost about $8k + regular job). It identified several startup costs that could be amortized over 15 years instead of taking the full hit this year, which I had no idea about. The document analysis saved me hours of manually sorting through receipts and bank statements. I ended up using the report it generated to file through TurboTax and felt way more confident than I would have otherwise. For anyone juggling multiple income sources with an LLC, it's definitely worth checking out - much cheaper than a CPA but more guidance than just TurboTax alone.

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Freya Pedersen

•8M

If your concern is about the cost of a CPA, but you still want professional help with the IRS, you might want to check out Claimyr. I was in a similar situation with my LLC last year and had questions about carrying losses forward, but couldn't get through to anyone at the IRS. I found https://claimyr.com and they connected me with an actual IRS agent in about 15 minutes when I'd been trying for days on my own. The agent walked me through exactly how to document my LLC losses and which forms I needed. They have a video showing how it works here: https://youtu.be/_kiP6q8DX5c. After talking with the IRS directly, I felt confident enough to file using TurboTax since I had official guidance on my specific situation.

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Freya Pedersen

•8M

The service works by navigating the complex IRS phone system and waiting on hold for you. When they reach a live agent, you get a call connecting you directly to that agent. It's not about having special access - it's about them doing the waiting instead of you. They don't actually interact with the IRS on your behalf - they simply handle the frustrating part of waiting on hold, which can take hours. The service just eliminates the need for you to stay by your phone for potentially half a day. When you get connected, it's just you and the IRS agent in a normal conversation that you would have had anyway.

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Chloe Anderson

•8M

I have to eat my words about Claimyr. I was so skeptical (see my comment above) that I decided to try it just to prove it was a waste of money. Well, I was wrong. After trying for THREE DAYS to reach someone at the IRS about how to properly document my LLC losses, I used the service and got connected to an agent in about 20 minutes. The agent walked me through exactly how Schedule C works with my situation and confirmed how I should handle the startup costs for my tax filing. Saved me hours of frustration and probably a costly mistake on my return. Sometimes it's worth paying for convenience, especially when tax filing deadlines are approaching. Still using TurboTax to file, but now I'm confident I'm doing it right.

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Diego Vargas

•8M

I've been running a small LLC for 5 years now and honestly, the first year is when a CPA is most valuable. They can help you set up everything properly, establish good record-keeping habits, and make sure you're maximizing deductions. After that first year, many people with straightforward LLCs can switch to TurboTax if they want to save money. The most important thing for your LLC that lost money is making sure those losses are properly documented so they can offset your other income (depending on your participation level and the type of LLC). A CPA will definitely get this right the first time.

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Diego Vargas

•8M

A consultation with a CPA is definitely a smart middle ground. Many offer an initial meeting at a reduced rate or even free. This gives you professional guidance on setting up your books and understanding what expenses to track, without the full cost of having them prepare your return. For finding an affordable CPA, I'd recommend asking other small business owners in your area for recommendations. Also look for smaller firms or solo practitioners rather than larger firms, as they often have more competitive rates for small businesses. Some CPAs even offer special rates for startups or businesses that lost money. Don't be afraid to call around and ask about their fee structure - most are very transparent about costs.

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