Good afternoon. Yes, you could write the entire $400 off...and you don't need to form an LLC for this...you can simply report your income and expenses on Schedule C and then it will roll over into your 1040.
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There really aren't any tax benefits to having an LLC...the operations just flow through to the owners...so there aren't any negative aspects....but the only reason you would form a LLC is to limit your liability ... which would protect your other assets from liabities of your business...but teaching music lessons is not likely to result in any potential liability...so I doubt the expense of forming an LLC would be worth it to you.