If you’re in business for yourself as a sole proprietor, or you’re planning to start a business, you need to know about the tax aspects of your venture. Here are eight important issues to consider: 1. You report income and expenses on Schedule C of Form 1040. The net income is taxable to you regardless
self-employment tax Archives - Crawford Ellenbogen
Feb 17, 2022
Important tax aspects of operating your business as a sole proprietor
- By Joan Ellenbogen
- Business, Taxes
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Jun 16, 2021
An S corporation could cut your self-employment tax
- By Victor Dozzi
- Business
- 0 Comments
If your business is organized as a sole proprietorship or a wholly owned limited liability company, you’re subject to both income tax and self-employment (SE) tax. There may be a way to cut your tax bill by operating as an S corporation. SE tax is imposed on 92.35% of SE income at a 12.4% rate
Feb 27, 2020
How business owners may be able to reduce tax by using an S corporation
- By Ellenbogen
- Business
- 0 Comments
Feb 20, 2019
When are LLC members subject to self-employment tax?
- By Ellenbogen
- Business, Taxes
- 0 Comments
Limited liability company (LLC) members commonly claim that their distributive shares of LLC income (after deducting compensation for services in the form of guaranteed payments) aren’t subject to self-employment (SE) tax. But the IRS has been seeking back taxes and penalties from LLC members it claims have underreported SE income, with some success in court.