What's the income threshold where I don't need to file taxes for my small LLC?

Wait seriously? Only $400? That's way lower than I thought. So even though I'm just starting out and barely making anything, I still need to file? Do I need to do quarterly estimated taxes too or just file at the end of the year?

Yes, the $400 threshold applies specifically to self-employment income. For your first question, you definitely need to file if you're over that amount. Regarding quarterly taxes, you're generally required to make estimated tax payments if you expect to owe at least $1,000 in taxes when you file your return. For a new business that's just starting out, you might not hit that threshold, but it's something to keep in mind as your business grows. If you don't pay enough throughout the year, you could face underpayment penalties.

Does it actually work with small business stuff? Most tax tools I've tried are oriented toward W-2 employees and don't handle 1099 or self-employment income very well.

How much does the service cost? And can it help figure out if I need to do quarterly filings too? I'm in a similar boat but making maybe $600-700 per month with my side gig.

It absolutely handles small business situations really well. The tool is specifically designed to cover all kinds of income sources including self-employment, which was super helpful for my situation. It actually explained how Schedule C works in plain English which was a game changer. For your questions about quarterly filings, yes it helps with that too. It analyzes your income patterns and tells you when you need to start making quarterly payments. For someone making $600-700 monthly, you'd definitely benefit from the guidance since you'll cross the threshold where quarterly payments become necessary.

How exactly does this work? The IRS phone lines are always busy whenever I call. Are you saying this somehow lets you skip the line?

Yeah right... sounds like a scam to me. There's no way to "skip the line" with the IRS. I've tried calling dozens of times and never get through. No way this actually works.

It's not about skipping the line - what their system does is automate the calling process. Their service keeps dialing and navigating the IRS phone tree for you, then calls you when they have an actual agent on the line. So you don't have to sit there hitting redial or waiting on hold for hours. It definitely works - I was skeptical at first too. They use a combination of automated tech and actual humans who know the IRS phone system inside and out. It saved me literally hours of frustration, and the IRS agent I spoke with gave me extremely helpful information about my exact situation.

What's the difference between gross income and net profit for this $400 threshold? Like if I made $2,000 in sales but spent $1,700 on supplies and expenses, would I still need to file?

The $400 threshold refers to net profit, which is your gross income minus your business expenses. In your example, if you made $2,000 in sales but had $1,700 in legitimate business expenses, your net profit would be $300. Since that's below the $400 threshold, you technically wouldn't be required to file based solely on your self-employment income. However, keep in mind there might be other reasons you'd need to file a tax return, and it's generally a good practice to file anyway so you have documentation of your business activity, especially if you plan to claim business losses.

This is super helpful. I've been on the fence about filing since I only made about $300 with my new photography business. Do you think it's worth paying for tax software or a professional just to file when I made so little?