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I started an LLC for my side business and the taxes for that were way more complicated than they should have been even with me paying for software (TaxAct) to h

I started an LLC for my side business and the taxes for that were way more complicated than they should have been even with me paying for software (TaxAct) to help me. In the end I had to go to H&R Block because I was worried I was going to mess something up and over/under pay (more worried about underpaying). I ended up watching someone else enter data into a computer (they messed up my address and my phone number so I had to correct some forms) and while they were able to e-file some of it, other parts I had to send in (paper). It's absurd and my business is tiny and relatively simple. The fact that I couldn't even find the info I needed online for /what/ I needed to file (let alone /how/) makes me furious. Having to pay ~$400 for someone else to enter basic info feels like robbery. I think for next year I can figure it out but I'm still wary (TaxAct kept asking for all these forms I didn't have and couldn't tell if I needed to "generate" them from my LLC to myself or if that was only for partnerships/corps). I have zero issues with paying taxes, in fact I'm somewhat happy to pay them but figuring out what I owe is miserable and fills me with anxiety and dread that I might mess up something and get in trouble.

bombcar 4y ago
As long as you do not mess up intentionally the worst case is they hit you with a penalty fee, and often not even that. Or you miss out a deduction. Unless you have an actual tax accountant, you’re just paying some teenager to enter your data into a higher-cost version of TurboTax. https://johntreed.com/products/aggressive-tax-avoidance-for-real-estate-investor https://johntreed.com/products/aggressive-tax-avoidance-for-... This book is aimed at the real estate investor but may still be worth a read.
bluGill 4y ago
You should have an accountant for that side business who will do taxes for you as part of services. They already have an unlimited account with someone for tax filing that can read from their computer so it is very quick. Plus there actually is good advice an accountant can give you.
- joshstrange 4y ago
  Yeah, this is my other plan for next year. I didn't do it this year because I waited too late (I thought I could figure it out) and I didn't look forward to being told I was doing it all wrong (turns out I don't think I was based on what H&R Block said).
renewiltord 4y ago
Those tax entry people are a scam. Don't ever use them. They're a tax on the computer illiterate and do nothing to indemnify you. They will get things wrong worse than you will and you will have no recourse.

bombcar 4y ago

As long as you do not mess up intentionally the worst case is they hit you with a penalty fee, and often not even that. Or you miss out a deduction. Unless you have an actual tax accountant, you’re just paying some teenager to enter your data into a higher-cost version of TurboTax. https://johntreed.com/products/aggressive-tax-avoidance-for-real-estate-investor https://johntreed.com/products/aggressive-tax-avoidance-for-... This book is aimed at the real estate investor but may still be worth a read.

bluGill 4y ago

You should have an accountant for that side business who will do taxes for you as part of services. They already have an unlimited account with someone for tax filing that can read from their computer so it is very quick. Plus there actually is good advice an accountant can give you.

joshstrange 4y ago
Yeah, this is my other plan for next year. I didn't do it this year because I waited too late (I thought I could figure it out) and I didn't look forward to being told I was doing it all wrong (turns out I don't think I was based on what H&R Block said).

renewiltord 4y ago

Those tax entry people are a scam. Don't ever use them. They're a tax on the computer illiterate and do nothing to indemnify you. They will get things wrong worse than you will and you will have no recourse.