Tax Q&A for Business Owners: S Corps, LLCs, Write-Offs, and More

Every business owner hits a point where the tax questions start stacking up.

Can I deduct this? Should I switch to an S Corp? Is this still a business if I have not made money yet? And what happens if I did something before I had my systems set up the right way?

In this episode, Mike opens the floor to questions from business owners and breaks down the tax answers behind them. From zero-activity LLC filings and Schedule C concerns to family payroll planning, vehicle deductions, and rental strategies like the Augusta Rule, this episode covers the practical decisions that shape how much tax you pay and how well your strategy holds up.

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Chapters

(03:22) Do You Need a CPA for a Zero-Activity Partnership Return?
A new LLC owner asks about filing a Form 1065 with no business activity. Mike breaks down why even a zero return can be more complex than it looks and what to consider before self-filing.

(04:47) Can a First-Year Business Loss Offset W-2 Income?
Mike walks through hobby loss concerns, material participation rules, and when a side hustle loss may be used to reduce taxes on other income.

(06:35) Is an S Corp Worth It at $120,000 of Profit?
This section covers the tradeoff between added payroll and tax prep costs versus potential self-employment tax savings, along with the importance of setting a reasonable salary.

(12:01) Where Can You File Business Taxes Online Yourself?

For business owners thinking about self-filing, Mike shares general software options and explains why second eyes matter on more complex returns.

(13:12) Can You Deduct Business Expenses Paid on a Personal Credit Card?
Mike answers a common startup question and explains how to handle valid business expenses paid personally before a business bank account is opened.

(14:27) How Does the Family Management Company Strategy Work?
This section breaks down how business owners with an S Corp may use a separate sole proprietorship to hire children, reduce payroll taxes, and stay compliant.

(20:56) How Does the Augusta Rule Work for Business Owners?
Mike explains how the Augusta Rule works, what records you need, and how to back it up in an audit.

Podcast Host:

Mike Jesowshek, CPA – Founder and Host of Small Business Tax Savings Podcast
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🎙 ABOUT THE PODCAST
The Small Business Tax Savings Podcast is your go-to resource for cutting-edge tax strategies to help entrepreneurs legally slash their tax bills. Hosted by Mike Jesowshek, CPA, this show breaks down complex tax topics into clear, no-fluff insights so you can keep more of your hard-earned money.