Why “It Depends” Might Be the Most Honest Tax Advice You’ll Ever Hear

If there’s one phrase that comes up over and over again at tax seminars, it’s this: “It depends.”

That may not sound satisfying—but when it comes to taxes, it’s the truth. Your neighbor, your favorite YouTuber, or even Google might mean well when they share tips about deductions and LLCs, but the problem is simple: not all tax advice fits every situation.

When my family first moved to Neosho and people learned that I was a tax accountant, the first thing I heard from many of them was something like this:

“My neighbor said that if I’m an LLC, I can deduct everything and won’t owe any taxes.”

Well… not quite.

Let’s talk about what that really means.

What an LLC Actually Is

An LLC—short for Limited Liability Company—provides a veil of protection between you and your business. It separates your personal assets from your business assets, which means creditors can’t come after your personal finances if something goes wrong in your business.

That’s the liability part. But when it comes to taxes, the IRS gives LLC owners options. You can choose to be taxed as a:

• Sole Proprietor

• Partnership

• S Corporation (S-Corp)

• C Corporation (C-Corp)

If you’re a one-person LLC, you’re automatically a sole proprietor and will file using Schedule C.
If your LLC has two or more members, you’re a partnership by default.

At any point, you can elect to be taxed as a C-Corp or S-Corp—but that decision is not reversible. Once you make the change, you stay a corporation.

Why It Matters

Each tax entity comes with its own rules, requirements, and potential benefits. What works beautifully for your friend’s small business might not work for yours at all.

For example, the deductions, payroll structure, and reporting standards for a sole proprietor are different from those of an S-Corp. That’s why blanket statements like “You can deduct everything” simply don’t hold up.

Every business is different. Your goals, structure, and income all shape how you should file and what deductions apply.

Get Advice That Fits You

So, where should you get your tax advice? Not from a neighbor. Not from a viral video. And definitely not from a one-size-fits-all checklist online.

You deserve guidance tailored to your situation.

If you’re in the Joplin or Neosho, Missouri area and want sound, practical advice for your taxes, call me today at (405) 809-876. Let’s make sure your business is set up the right way—so you can keep growing with confidence.