Many people who launch small businesses start out as sole proprietors. Here are nine tax rules and considerations involved in operating as that entity.
Nine Tax Rules for Sole Proprietors
Tag: Self-employment tax
Spouse-Run Businesses Have Unique Tax Challenges
Do you and your spouse run a successful unincorporated small business together? If so, you face some challenging tax issues. The partnership issue for spouse-run businesses An unincorporated business with your spouse is classified as a partnership for federal income tax purposes, unless you can avoid that treatment. If not, you must submit a Form
Using an S Corporation may Reduce your Taxes
Depending on your entity type, you’re subject to both income tax and self-employment tax. There may be a way to cut your tax bill by using an S corporation.
When are LLC Members Subject to Self-Employment Tax?
LLC members commonly claim that their distributive shares of LLC income aren’t subject to self-employment tax. But the IRS has been cracking down on LLC members it claims have underreported SE income.