FreeLancer768
New member
What is the name of your state? California
Respected forum members,
First of all, I am a fulltime Uber and Lyft driver, rideshare driving is my one and only source of income. Last year my CPA suggested that I should open an S Corporation and that I can pay less taxes. He gave me the figures without the Corporation, and with Corporation. And the difference in the amount of taxes looked significant. So, I opened an S Corporation and, according to him, I paid less taxes in 2019. Now my questions are. And one question is regarding my car, and one regarding filing my taxes myself to save CPA fees.
1) How come I paid less taxes? How does an S Corporation help you pay less taxes? Does the tax code have such a thing or my CPA just wanted to make some money out of me. He charged me $1000 to prepare the S Corporation for me.
2) Since S Corporation has headaches of yearly statement of purpose etc, I don't want that headache anymore. I want to dissolve it and open an LLC instead. Will an LLC help me pay less taxes like an S Corporation? I read an article online in which it said that I could open an LLC and then ask the IRS to treat it like an S Corporation, and it will help me just like an S Corporation when it comes to saving some money on taxes.
3) When I bought the car brand new, next year I paid way less taxes. How does a brand new car for Uber/Lyft help you pay significantly less taxes? Does IRS treat purchase of a brand new car differently? How does that work?
4) My CPA charges me double for individual and corporate tax. I want to do it myself. What software should I use? What software do CPAs use. How do they send everything to IRS, like my account information etc, and then IRS takes money from my account in April?
And what if I mess up things while filing taxes myself? Will IRS penalize me, or I will be given chances to keep trying and trying until I have filed my taxes correctly? I really want to learn everything and do everything myself. I mean my business is simple, driving for Uber/Lyft. I should be able to do it myself and save CPA fees. $1000 CPA fee can do so much for me. I could go on a vacation with that money.
I will really really appreciate your kind and informative replies.
Thank you so much in advance. God bless!
Respected forum members,
First of all, I am a fulltime Uber and Lyft driver, rideshare driving is my one and only source of income. Last year my CPA suggested that I should open an S Corporation and that I can pay less taxes. He gave me the figures without the Corporation, and with Corporation. And the difference in the amount of taxes looked significant. So, I opened an S Corporation and, according to him, I paid less taxes in 2019. Now my questions are. And one question is regarding my car, and one regarding filing my taxes myself to save CPA fees.
1) How come I paid less taxes? How does an S Corporation help you pay less taxes? Does the tax code have such a thing or my CPA just wanted to make some money out of me. He charged me $1000 to prepare the S Corporation for me.
2) Since S Corporation has headaches of yearly statement of purpose etc, I don't want that headache anymore. I want to dissolve it and open an LLC instead. Will an LLC help me pay less taxes like an S Corporation? I read an article online in which it said that I could open an LLC and then ask the IRS to treat it like an S Corporation, and it will help me just like an S Corporation when it comes to saving some money on taxes.
3) When I bought the car brand new, next year I paid way less taxes. How does a brand new car for Uber/Lyft help you pay significantly less taxes? Does IRS treat purchase of a brand new car differently? How does that work?
4) My CPA charges me double for individual and corporate tax. I want to do it myself. What software should I use? What software do CPAs use. How do they send everything to IRS, like my account information etc, and then IRS takes money from my account in April?
And what if I mess up things while filing taxes myself? Will IRS penalize me, or I will be given chances to keep trying and trying until I have filed my taxes correctly? I really want to learn everything and do everything myself. I mean my business is simple, driving for Uber/Lyft. I should be able to do it myself and save CPA fees. $1000 CPA fee can do so much for me. I could go on a vacation with that money.
I will really really appreciate your kind and informative replies.
Thank you so much in advance. God bless!