You would be considered a sole-proprietor because of the amount of time and physical effort you invest in your business. Investment and rental activities are passive in nature, so that is why they are exempted from self-employment (social security) taxes.
As a sole-proprietor, you will pay in self-employment tax as part of your reporting of business income and expenses on schedule C, which will be included with your form 1040 federal income tax filing.
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