As a Sole Prop / Single-Member LLC, you pay 15.3% SE tax on 92.35% of all net profit. Electing S-Corp status (IRS Form 2553) lets you split profit into a Reasonable W-2 Owner Salary (subject to FICA) and K-1 Owner Distributions (0% SE Tax).
| IRS Schedule C Category | Annual Spent ($) | Deductible ($) |
|---|---|---|
| Line 8Advertising & Marketing | $2,400.00 | |
| Line 9Car & Truck / Mileage (12,400 mi × $0.70) | $8,680.00 | |
| Line 11Contract Labor (Subcontractors) | $6,500.00 | |
| Line 15Insurance (GL, E&O, Commercial) | $1,450.00 | |
| Line 17Legal, CPA & Professional Fees | $850.00 | |
| Line 18Office Expense & SaaS Software | $1,920.00 | |
| Line 22Supplies, Tools & Materials | $3,200.00 | |
| Line 24aBusiness Travel (Hotels, Airfare) | $1,600.00 | |
| Line 24bBusiness Meals (Auto 50% Rule) | $1,100.00 | |
| Line 25Utilities, Cell Phone & Internet | $1,850.00 | |
| Line 27aOther (Bank/Merchant Fees, Dues) | $1,000.00 | |
| Line 30Home Office Deduction (200 sq ft × $5) | $1,000.00 |