Thanks for your questions, @jenny42 !
1) Self-employment taxes will be due on all self-employment income.
2) Yes, self-employment tax is on top of regular income tax.
3) You would report all income received during the calendar year on the tax return for that year (unless you opted to keep your books on the accrual basis, but that's a more advanced topic). So if it was received in 2023, then you would file it on your tax return due April 2024.
4) We are not allowed to give advice on S Corps or LLCs, other than to say that being a sole proprietor is the simplest option. If you are considering another option, then I would advise consulting with a local or online tax accountant or attorney who advises on such issues. LLCs are a "disregarded entity" for tax purposes, so there is no real tax effect to forming one.
5) Business expenses are deducted from business income.
6) The IRS doesn't much care what bank accounts you use. However, it's best practice to have a separate business account, rather than commingling business and personal funds.
7) No, you would have to amend the previous return, unless the deadline for doing so had already passed.
Hope this helps, please let me know if not!
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