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I am employed with full benefits and get W2 form. I also have outside employment teaching and get paid and will get 1099 form. Can I form an LLC with 1099 employment to save taxes as this is about 25% of my total income (substantial amount, won't go on)?
Answer

You can absolutely take advantage of business deductions to reduce your taxes.

To sweeten the deal, you don’t even have to form an LLC to do this. By default, the tax code treats you as a “sole proprietor” and allows you to report your business income and expenses on a Schedule C without officially registering as an LLC. Your Schedule C is attached to your 1040 at tax time and submitted to federal and state governments.

For more information on how this works, check out our guide to deducting your business expenses without an LLC!

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Answer

You can absolutely take advantage of business deductions to reduce your taxes.

To sweeten the deal, you don’t even have to form an LLC to do this. By default, the tax code treats you as a “sole proprietor” and allows you to report your business income and expenses on a Schedule C without officially registering as an LLC. Your Schedule C is attached to your 1040 at tax time and submitted to federal and state governments.

For more information on how this works, check out our guide to deducting your business expenses without an LLC!

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Keeper Staff

Keeper is a delightfully smart tax filing software that's especially useful for people with 1099 contracting and freelance income. Our blog breaks down IRS guidance with real-world examples and analysis by tax professionals — empowering taxpayers to save money and take control of their finances.

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