Thanks for bringing this up! Do you have any recommendations for finding good commercial insurance for a camper rental? And approximately how much should I expect to pay compared to regular insurance?

I recommend talking to an independent insurance broker who handles both personal and commercial policies. They can shop around for the best coverage for your specific situation. Commercial insurance for a rental camper will definitely cost more than personal insurance - probably 1.5 to 2 times as much. The exact cost depends on factors like the value of your camper, your location, coverage limits, and how many days you rent it out. Make sure the policy specifically covers peer-to-peer rentals, as some commercial policies are designed for full-time rental businesses and might not be appropriate for your mixed-use situation.

This is such an important point. My neighbor tried to run an equipment rental business from his home and got shut down by the HOA and city zoning department. Cost him thousands in fines and legal fees.

I heard businesses with inventory HAVE to use accrual. Is that true? I'm planning to sell handmade jewelry through my LLC and will have some materials on hand.

That's super helpful! My business will be mostly project-based digital marketing with clients paying after work is completed, usually within 30 days. No inventory really, just my time and some software subscriptions. So it sounds like cash would be simpler to start with?

For a project-based digital marketing business with 30-day payment terms and no inventory, cash accounting would absolutely be simpler to start with. It'll align better with your actual cash flow (which is what you really care about when you're starting out), and the record-keeping is much more straightforward. You'll just record income when clients actually pay you, which makes tax planning easier too. If your business model changes significantly down the road or you grow substantially, you can always reconsider, but cash accounting is the right choice for your situation now.

Thanks for this insight! Do you think it's reasonable to negotiate a rate increase after I've completed a certain number of returns or after a specific time period?

Absolutely! That's a very common arrangement. You could propose starting at a lower rate while training (maybe $30-35/hour), then bump up to $40-45 after you've successfully completed 10-15 S Corp returns or after the first month, whichever comes first. Just make sure to get this agreement in writing before you start. Many CPAs will happily agree to this structure since they expect you'll become more valuable as you gain experience with their specific clients and processes. It also gives you a built-in opportunity to revisit compensation without having to initiate an awkward conversation later.

Good point. When I subcontracted, the CPA provided access to their Drake software through a remote login, but I had to use my own computer and internet. Some may expect you to have your own ProSeries or UltraTax license which would be crazy expensive for a subcontractor.

What supporting documents did you need to include? I'm not sure what to attach with mine.

It depends on what you're amending! For my situation, I was adding some dividend income I missed, so I included the corrected 1099-DIV form. Generally, you should include any documents that support the specific changes you're making. If you're changing income, include the corrected income statement. If you're adding a deduction, include receipts or documentation of those expenses. If you're changing filing status, include documentation that supports that change. The IRS instructions for Form 1040-X have a good section on what to attach. If you're not sure, include more documentation rather than less - better to give them everything they might need than to have them request additional info later.

Omg thank you so much for this insider perspective! That's honestly such a relief to hear. I've been losing sleep over this and its good to know I'm not on some automatic audit list. I'll make sure to be super clear about why I'm filing the amendment and include everything they might need!

Do you know if there's any difference in processing time between major banks and smaller credit unions? Mine sometimes takes longer for ACH transfers.

Yes, there can definitely be differences. Larger banks typically process ACH transfers (which is what IRS payments are) more quickly - usually within 24 hours of receiving them. Smaller credit unions sometimes batch their ACH processing and might only run them once per day, which can add a delay of up to 24 hours. If you're with a smaller credit union, I'd add an extra day to the expected processing time just to be safe. So if the IRS schedules the withdrawal for the 15th, it might not actually hit your account until the 17th or 18th at a smaller institution.

If your payment bounces, the IRS will send you a notice and charge you a penalty - usually about 2% of the payment amount. They'll also charge interest on the unpaid amount until you pay it. Plus your bank will probably charge you an NSF fee too.