272 sats \ 0 replies \ @nullcount 20 Aug \ on: Soliciting recommendations - best accountants to help starve the state bitcoin
Most accountants are just going to do "the best they can" with whatever paperwork you give them. If you just hand them a W2 stub, they're going to charge you $400+ for a return you could have easily done yourself.
Highly recommend educating yourself (YouTube) and doing some personal tax planning so you can give your accountant something that they can work with.
An "easy" first step that's available to everyone is to form a single-member LLC (Limited Liability Company), you can use business expenses and losses from your LLC to offset other income on your personal tax return, including W-2 income from an unrelated job.
For example:
Without an LLC, maybe you earn $50k on your W2 but you spend $25k on expenses (new laptop, auto, office supplies, home office, etc.) You're still taxed on that $50k even tho you spent half of it on "necessary purchases that allow you to continue earning".
With an LLC, you can earn $50k on W2, but you declare those $25k in necessary purchases as "business expenses". Now, you're only taxed on the remaining $25k not the entire $50k.
Your business should probably show some revenue every year, but you don't have to be profitable right away.