I have a full-time W2 job in sales, but I’m also growing a consulting business that I hope will replace my income in the next few years.My consulting business is registered as an LLC in Idaho. 2024 was my first year in business. No employees, not much overhead.Since I didn’t make a huge amount last year, is it worth paying someone to do my taxes? I work from home and have minimal expenses.
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I’m an accountant. A key question is how your LLC is taxed. LLCs can be taxed in different ways. Do you know if yours is a disregarded entity (taxed as a sole proprietorship), or did you elect S-corp or C-corp status?A lot of new LLC owners aren’t sure about this. If you’re unsure, it might be worth hiring a pro at least for your first year to get things set up correctly.
@Hollis
That’s a good point, but most LLCs default to pass-through taxation unless the owner makes an election.Chances are this guy is a single-member LLC filing a Schedule C, and he can probably use TurboTax or similar software. But yeah, without confirmation, it’s hard to say for sure.
If you’re comfortable doing your own taxes and have experience filing personal returns, you could try tax software like TurboTax. It walks you through everything.I did mine for years, then paid a CPA firm for a while… let’s just say I’m now fixing my last three years of returns myself.
Think about it this way…How much time will it take you to do it?Will you feel confident you did it right?Or would you rather pay someone to handle it so you can focus on your sales job and consulting business?