New LLC, Venmo Gifts for Our Children and 1099-K

[Kate_H]

I have a few questions, thank you in advance for the response:

1) I started an LLC partnership with my husband. Total income/profits are still low, between 1k-2k currently. I have some larger expenses I need to make for the business, will these deduct what I would owe in taxes? Or will I still need to set money aside for taxes?

2) Are there tax thresholds you reach before being taxed, or are all profits taxable income? 

3) As far as Venmo/PayPal, we have a private account that receives gifts from family for our children, if that’s over $600 is that being included in 1099-K? Or payments/gifts from friends and family? 

[hchu]

Congratulations on your new venture!   I am going to give you answers in reference to your Federal taxes for now.  Please check with your state about filing requirements for state purposes.  Many states have an annual filing fee whether or not you have income.

For tax purposes you are required to report all income,  whether you have a profit of not.  If you have losses they will carryover to the following years and offset any future income. Be sure to keep all the receipts of your business expenses.

You will not pay taxes on gifts you receive.  Only business income counts as income.  My grandkids should be very happy about that! Whatever happy to buying gifts for grandkids?  It's Venmo all the way for them.