When it comes to taxes, most people are looking for quick, clear answers.
And while there are plenty of answers out there, the truth is—taxes are rarely one-size-fits-all.
What applies to one business owner may not apply to another. The structure of your business, how you’re paid, your income sources, and even your long-term goals all play a role in how your taxes should be handled.
Below are some of the most common tax questions we hear—and what you really need to know behind the answers.
What is the “$600 rule”?
This is one of the most talked-about (and misunderstood) tax topics right now.
The “$600 rule” refers to proposed changes to how third-party payment platforms like Venmo, PayPal, and Cash App report transactions to the IRS. While there has been a lot of discussion around lowering the reporting threshold, the reality is that the rules have evolved—and many people are still operating on outdated or incomplete information.
More importantly, reporting requirements are not the same as taxable income.
Receiving money through an app does not automatically make it taxable. The key factor is why you received the money. Business payments may be taxable, while personal transfers—like splitting a dinner bill or reimbursing a friend—are not.
This is where understanding the details matters.
Can I file my LLC taxes by myself?
Technically, yes—you can file your own LLC taxes.
But filing taxes and filing them correctly are two very different things.
Many business owners miss deductions, misclassify expenses, or fail to plan ahead for tax liabilities. Over time, those small oversights can add up to significant financial impact.
Working with a tax professional isn’t just about compliance—it’s about making informed decisions that support your business growth.
Do I file my LLC and personal taxes together?
In many cases, yes.
Most LLCs are considered “pass-through” entities, meaning the income flows through to your personal tax return. Instead of the business being taxed separately, the profits are reported on your individual return.
However, this depends on how your LLC is structured.
If your business has elected to be taxed as an S-Corporation or partnership, the filing requirements change. That’s why understanding your entity setup is critical to getting it right.
How does an LLC file taxes?
This is where things really start to vary.
An LLC is a flexible structure, and how it files taxes depends on how it is classified:
- A single-member LLC is typically treated as a sole proprietorship
- A multi-member LLC is generally treated as a partnership
- Some LLCs elect to be taxed as an S-Corporation
Each structure comes with different filing requirements, deadlines, and tax strategies.
Choosing (or staying in) the right structure can have a major impact on how much you pay in taxes over time.
How much can I pay someone without a 1099?
The general rule is that if you pay an independent contractor $600 or more for services during the year, you are typically required to issue a Form 1099.
However, like many tax rules, there are exceptions.
Certain types of payments, payment methods, and business structures can change whether a 1099 is required. For example, payments made via third-party processors or to corporations may be treated differently.
This is a great example of why relying on a single number without context can lead to mistakes.
Does Zelle report to the IRS?
No—Zelle does not issue 1099-K forms like some other payment platforms.
But that doesn’t mean the income isn’t taxable.
If you are receiving money for goods or services, it is still considered income and must be reported, regardless of whether a form is issued.
This is one of the most common misconceptions—and one that can lead to problems if misunderstood.
Why These Answers Matter More Than You Think
The common thread in all of these questions is simple:
👉 The answer depends on your specific situation.
Taxes aren’t just about filing forms—they’re about understanding how each decision impacts your financial picture as a whole.
At Rae’s Accounting, we don’t just answer questions.
We help you understand the why behind them—so you can make confident, informed decisions year-round.
Work With a Team That Looks Ahead
If you’ve ever felt unsure about how tax rules apply to you, you’re not alone.
The good news is—you don’t have to figure it out on your own.