Hi everyone, I’ve been looking into Keeper and I’m seriously considering using it. I run a single person LLC in digital marketing and content production, and I travel a lot. With all the receipts and expenses piling up, it’s becoming a hassle to track them while I’m on the road. Do you think Keeper would be a good investment for me? It’s a bit expensive upfront, but the convenience might be worth it. I’m new to having an LLC, as I just switched to being fully freelance, and I’m a little overwhelmed by the tax side of things.
Does Keeper help with filing quarterly taxes? Will it handle both my personal taxes and my business/LLC taxes too? I haven’t been able to find direct answers to these questions, so I decided to ask here.
If you’re running a single person LLC and you didn’t elect to be taxed as a corporation, you don’t need a separate business tax return. You’ll report everything related to your business on Schedule C of your personal tax return. The ‘LLC’ is just a legal structure and doesn’t affect your taxes directly. I’m not sure about Keeper, but I know they have a presence on this forum and seem to provide solid advice on tax topics.
Thanks for clearing that up! I followed a checklist from a friend when setting up my LLC, got an EIN, a business license, and so on. How can I check if I selected to be taxed as a corporation? I filled out so many forms, I’m not sure I got everything right.
@Cade
I might’ve confused things earlier, so let me clarify. When you run a business, you report the income and expenses on Schedule C of your 1040 tax form. You don’t need an LLC or EIN to do this. These are just legal protections, and they don’t affect your tax deductions. An LLC doesn’t change your tax treatment unless you elect for it to be taxed as a corporation. If you want to be taxed as a corporation, that’s a separate process. You’d likely talk to a CPA about it when your business grows beyond $100k in profit. An S-Corp might help reduce self-employment tax, but it comes with more paperwork. Just know, all the steps you’ve taken so far are fine, it’s the tax structure that matters.
@Jensen
Ah, got it, thanks! I’ll definitely check with my CPA. I’ve been trying to gather info so I can ask him the right questions and not take up too much of his time. He’s always so busy!
Cade said: @Jensen
Ah, got it, thanks! I’ll definitely check with my CPA. I’ve been trying to gather info so I can ask him the right questions and not take up too much of his time. He’s always so busy!
Haha, fair enough! It might be worth asking your CPA about electing S-Corp status if your business gets over that $100k profit mark. It’s generally a good idea at that point, but it really depends on your specific situation.
@Jensen
Got it, I’m projecting just under $100k for my digital marketing business, though my expenses are high due to travel and equipment. Once I start routing more income through my business account, I think S-Corp might be the right move. I’ll email my CPA soon to get his take on it.
Thanks again for all the advice, it’s been super helpful!
@Cade
Great advice, definitely! If your LLC makes significant profits, electing S-Corp status could save you on taxes, but keep in mind it comes with additional responsibilities like filing a business tax return and handling payroll taxes. If you’re looking at profits between $80k and $100k, an S-Corp election might make sense. But make sure to factor in the extra work and costs involved.
@Cade
You probably don’t want to be taxed as a C-Corp. If anything, you may want to consider an S-Corp or just keep things simple as a disregarded entity. It’s worth paying a CPA for professional advice to make sure you’re making the right choice.
@Cade
Did you file Form 8832 with the IRS? If you’re the only member of your LLC and haven’t filed it, your LLC is probably a disregarded entity. In that case, your LLC’s income and expenses should go on Schedule C of your 1040, and you won’t need a separate tax return.
@Weston
You don’t need to file Form 8832 if you want to elect S-Corp status. Instead, you’ll need to file Form 2553. You used to need both, but the 2017 update to Form 2553 changed that.
@Weston
I just looked it up, and I don’t remember filling out Form 8832. I’ll get that done this week. Is there anything I need to know before submitting it, or anything I should gather for it?
Cade said: @Weston
I just looked it up, and I don’t remember filling out Form 8832. I’ll get that done this week. Is there anything I need to know before submitting it, or anything I should gather for it?
You only need Form 8832 if you’re deciding to be taxed as a corporation or S-Corp. It’s best to speak to a tax expert or CPA to figure out what structure works best for you. A lot of the decision depends on your earnings and time available to handle the extra paperwork.
Hey! We’re active on this forum and frequently answer tax questions to help the community. Just wanted to mention that we’re not allowed to post links or self-promo, but we’re happy to share our knowledge on tax topics and help out with any specific questions you have here.