Let’s clear up some of the misinformation I’m seeing out there 👀
Q: What is the “$600 rule”?
A: This gets misunderstood ALL the time. The $600 rule relates to reporting requirements (like 1099s)—not when income becomes taxable.
👉 If you’re self-employed, you are required to report income starting at $400, not $600.
Q: Can I file my LLC taxes myself?
A: First—let’s get this straight…
👉 An LLC is a legal structure, NOT a tax strategy.
How you file depends on your tax election (sole proprietor, partnership, S-Corp, etc.).
Yes, you can file yourself—but the real question is:
👉 Are you doing it strategically… or just submitting forms?
Q: Do I file my LLC and personal taxes together?
A: Again—it depends on how you’re set up.
Most small business owners have flow-through taxation, meaning income lands on your personal return.
But don’t let the word “LLC” confuse you—it’s about your tax classification, not just your entity.
Q: How does an LLC file taxes?
A: There is no one-size-fits-all answer:
- ✔️ Sole Proprietor → Schedule C
- ✔️ Partnership → Form 1065
- ✔️ S-Corp → Form 1120S
👉 Same LLC… completely different tax outcomes depending on elections.
Q: How much can I pay someone without a 1099?
A: For now, the threshold is $600 for services.
👉 BUT starting in 2026, that threshold is expected to increase to $2,000.
(Yes… changes are coming. This is why staying updated matters 👀)
Q: Does Zelle report to the IRS?
A: No, Zelle does not issue 1099s.
👉 But let me be clear: Income is still taxable whether it’s reported or not.
💡 Bottom line:
Taxes are not “one answer fits all.”
Your situation, your entity, and your strategy all matter.
If you’re guessing… you’re probably overpaying 💰
👉 That’s where I come in.