![]() ![]() The CA 568 is even simpler because all they care about is revenue, so it's 2 numbers (revenue, and LLC fees). This may look complicated, but it's basically six numbers. Again for me, all of this is done in TurboTax.įor me, lines 1,3,5,7 are the same number (revenue), and my expenses are in lines 13 (which is entirely special depreciation of capex), 18, 23 (LLC fees), 25 (portion of utilities allocated to home office) and 30 (home office deduction). Last, if you hire a contractor and pay more than $600, you need to also fill out a 1099 form. All of this stuff is automatically generated by filling out questions/forms in TurboTax. I also work from home so I use a home office deduction. The main hiccup is that certain items are capital expenditures which normally need to be depreciated, but you can use special depreciation below a certain threshold to basically expense it in the first year. For the most part expenses are just expenses. Revenue is just when revenue hits your bank account. I just export the financials from my banking website into Excel. Which means you can use bank account statements (you should definitely set up a separate bank account for your business) to keep track of revenue and expenses when they hit your bank account for a calendar year. But I'll tell you what I do.įirst, unless you have a good reason otherwise, you should use cash accounting (not accrual accounting). So if you don't want to get into the weeds, then maybe hiring a bookkeeper and/or accountant may be better. I've never taken a bookkeeping course, but I do have a background in finance so accounting has always been relatively easy for me. Caveat that I'm not a lawyer nor an accountant. TurboTax costs about $70 each year, and all of the above takes a few hours of my time per year.įorms may be different depending on which state your LLC is in, and tax rules may be different depending on where you live. I do my own taxes with TurboTax which generates these tax forms, and my own bookkeeping in Excel.
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