Great question! The answer is an enthusiastic yes! 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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Sarah is an Enrolled Agent with the IRS and has 6 years of tax and accounting experience. She's an avid hiker, animal lover, and self-proclaimed chocolate connoisseur.