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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)?

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 York, EA

Sarah is a staff writer at Keeper Tax and has her Enrolled Agent license with the IRS. Her work has been featured in Business Insider, Money Under 30, Best Life, GOBankingRates, and Shopify. She has nearly a decade of public accounting experience, and has worked with clients in a wide range of industries, including oil and gas, manufacturing, real estate, wholesale and retail, finance, and ecommerce. Sarah has extensive experience offering strategic tax planning at the state and federal level. During her time in industry, she handled tax returns for C Corps, S corps, partnerships, nonprofits, and sole proprietorships. Sarah is a member of the National Association of Enrolled Agents (NAEA) and maintains her continuing education requirements by completing over 30 hours of tax training every year. In her spare time, she is a devoted cat mom and enjoys hiking, baking, and overwatering her houseplants.

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