Ana’s Tax & Accounting Studio

💡 Small business tax tip:

Starting an LLC is often a smart move for liability protection, but many people are surprised to learn that it doesn’t automatically lower taxes.

In many cases, a single-member LLC is still taxed the same way as a sole proprietorship, with the income reported on the owner’s personal tax return.

The structure can still be beneficial, but it’s important to understand what it does and doesn’t change from a tax perspective.

📌 Quick Tax Reminder for Small Business Owners

If you own an S-Corporation or Partnership, the tax filing deadline is March 15.

If your return isn’t ready yet, you can file an extension, which moves the deadline to September 15.

A couple important things to keep in mind:

• An extension gives more time to file, not more time to get organized later
• Schedule K-1 forms must still be prepared for partners or shareholders
• Many business owners will need their K-1 before they can finish their personal tax return

Filing the extension on time helps avoid late filing penalties and gives you time to finalize the return properly.

Sharing this reminder in case it helps someone avoid a last-minute scramble this week.

Many cleaning business owners remember the big expenses, but a lot of smaller deductions get missed simply because they aren’t tracked during the year.

If you run a cleaning business, here are a few things worth double-checking before filing:

• Mileage between houses – driving from one client to another usually counts as business mileage.
• Cleaning supplies – products, gloves, paper towels, replacement tools, etc.
• Equipment – vacuums, mop systems, carpet cleaners, and similar equipment.
• Business use of your phone or scheduling apps used to communicate with clients.
• Home office space if you manage scheduling, bookkeeping, and client communication from home.
• Storage space for equipment and supplies if you keep vacuums, chemicals, or other business materials in a dedicated area at home.

I also often see situations where income and expenses get mixed with personal finances, which can make these deductions harder to identify later.

Just sharing in case it helps someone avoid headaches during tax season.

If you run a photography business, here are a few things worth double-checking before filing:

• Camera equipment and lenses – including repairs and maintenance.
• Editing software and subscriptions (Lightroom, Photoshop, gallery platforms, etc.).
• Props, backdrops, and studio supplies used for shoots.
• Mileage to photo sessions, events, or client meetings.
• Home office space if you edit photos, communicate with clients, or manage bookings from home.
• Storage for equipment such as cameras, lighting gear, and props if kept in a dedicated business area.
• Online services like website hosting, booking systems, and gallery delivery platforms.

I also often see situations where business expenses are mixed with personal purchases, which makes it harder to identify all the deductions later.

Running a business from home?

Mixing personal and business transactions makes tax reporting less accurate and more stressful. Separating accounts improves clarity, compliance, and understanding of true profit.

Common issues:
• Missed deductions
• Inflated income totals
• Extra tax prep time
• No clear view of profit

Are your business and personal finances fully separated?

Running a business from home?

Your internet and phone bills may be partially deductible, but only based on the business-use percentage, not the full amount. Allocating a reasonable percentage based on actual usage is key.

Common mistakes:
• Writing off 100% of the bill
• Not deducting any portion
• Guessing the percentage
• No record of how usage was determined

Are you tracking your business-use percentage consistently?

Running a business from home?

Your home office deduction isn’t about guessing. It’s about meeting two specific rules: regular and exclusive use.
That means the space must be used consistently for business and not double as personal space. A desk in a shared living room usually doesn’t qualify, but a clearly defined, dedicated area often does.

Common mistakes I see:
• Claiming a shared space
• Avoiding the deduction out of audit fear
• Not measuring square footage accurately
• No documentation to support the claim

If you work from home, do you have a clearly defined workspace used only for business?