Tax and money questions digital sellers and course creators ask

How Can I Reduce My Taxable Income As An LLC?

You reduce LLC taxable income by maximizing deductible business expenses, contributing to a Solo 401(k) or SEP IRA, claiming the home office deduction, deducting health insurance premiums, and taking the 20% Qualified Business Income deduction on Schedule C or Form 1120-S if you have elected S-corp status.

Is Inventory Tax Deductible?

Yes, but not when you buy it. Inventory costs become deductible as Cost of Goods Sold (COGS) only when the item actually sells, calculated in Part III of Schedule C. Unsold stock sitting in a warehouse or garage isn't a write-off yet, even though you already paid for it.

How Do People Avoid Taxes With an LLC?

An LLC by itself does not lower your taxes: profits still pass through to your personal return and get hit with the 15.3% self-employment tax. What actually reduces tax bills is electing S-corp status, deducting real business expenses, and funding a SEP-IRA or Solo 401(k), not the LLC label itself.