Being self-employed means you’re a sole proprietor and your business is a sole proprietorship.
- Are owned by one person—you don’t have any partners
- Are unincorporated—you haven’t filed any legal forms to incorporate your business
- Have no legal distinction between the owner and the business—you are entitled to all the income, but also must pay the bills, including taxes
A married couple can be considered sole proprietors when they elect on their 1040 to treat their jointly owned and operated business as a qualified joint venture.
Organizations that aren’t sole-proprietorships:
- S Corporation
- Limited Liability Company (LLC), except a single-member LLC that doesn’t elect to be treated as a corporation
When you’re a sole proprietor, you will need to file Form 1040 (Individual Income Tax Return) with a Schedule C to calculate your net profit or loss.
Once we determine you have self-employment income, we create your Schedule C and also review the income and expenses associated with your business.