Tax time can make you wonder if you’re missing out on deductions you deserve. Many LLC owners feel uncertain about what they can claim, worried that they’re leaving money on the table with the IRS. Between running your business and juggling daily demands, finding time to figure out IRS rules often gets pushed aside.
You don’t need to become a tax expert to claim these deductions. You just need to know which ones apply and create a few habits to stay on top of them. Here’s how to make sure you’re not missing any money that should be staying in your pocket.
This part can feel stressful, but it doesn’t have to be. LLCs are flexible, so you can choose how your business is taxed: sole proprietorship, partnership, S corp, or C corp. This choice determines which deductions you can claim and how you can claim them.
It matters because your classification affects the forms you file and the rules you follow for deductions. For example, home office deductions work differently for sole proprietorships than for S corps and C corps. If you’re not sure which category you’re in, check last year’s tax return or ask your accountant. It’s worth the time to get this right.
Most business owners remember the obvious deductions like payroll, rent, and insurance. But there are other expenses that often get missed. These can add up to real savings.
Here’s how to make sure you’re not missing them:
A closer look at these deductions can help you keep more of what you earn.
A home office doesn’t have to be a whole room. If you use part of your home just for business, you can deduct some of your household expenses.
You can write off a portion of rent or mortgage interest, utilities, and repairs. The IRS offers two ways:
Taking a photo or drawing a rough floor plan can help you figure out what’s fair to claim. If you’re an S corp, you’ll need to set up a reimbursement plan for yourself.
Driving for business can be deductible if you keep good records. Commuting doesn’t count, but trips to see clients or go to the bank do.
If you’re taking classes or attending events to make your current business better, those costs can be deducted. But if it’s a class for something new that’s unrelated, it’s not deductible.
You can claim:
Add a quick note to each expense to explain how it connects to your business. It helps if you ever need to show proof.
When you’re launching your LLC, some early expenses can be written off. Startup costs include legal fees, market research, and early advertising.
You can usually deduct up to $5,000 of startup costs in the first year. If your total costs are more than $50,000, you’ll have to spread them out over several years.
Keep all your early paperwork in one place so you don’t miss these deductions later.
Yes, as long as they’re for your business. Deductions include subscriptions to trade journals, online tools, and memberships in professional groups.
Examples include:
If you report income when you earn it (accrual accounting), you can deduct unpaid invoices as bad debt. You have to show that you already counted this income in a past year and tried to collect. If you use cash accounting, you can’t claim a deduction for money you never received.
Some of the smallest fees get overlooked. Take a second look at:
Download your year-end bank statements to catch these. They might be small, but they add up fast.
Big purchases like computers, furniture, and tools don’t have to be deducted over several years. You can often deduct them right away by using the Section 179 deduction.
This can really help if you’re investing in tools or equipment and want to save on this year’s taxes.
Good records make deductions easier and keep the IRS off your back.
Here’s how to keep it simple and stay organized:
You don’t need to be an expert to save money, but some things are easier with a tax professional’s help.
Get help when:
Look for a CPA or tax pro who works with small businesses. Don’t fall for promises of giant refunds from someone who won’t stand behind their work.
You don’t have to know every detail of the tax code to make smart choices. It’s about having a plan, keeping clear records, and getting help when you’re not sure.
Here’s what to do next:
You work hard to earn every dollar. Make sure you’re keeping more of it by claiming what’s yours. Every small habit adds up to real savings.