The key to determining if you’re self-employed is to assess if you're in business for yourself or are the owner of your own business.
This includes any part-time businesses or private “side jobs” where you’re performing services in addition to a regular job or business.
You may also be self-employed if you’re an individual who:
- Is the sole proprietor of an unincorporated business
- Works as an independent contractor, consultant, or freelancer
- Is a member of a business partnership
- Owns or is part of a limited liability company (LLC)
- Earns income through investments
- Earns income through rental property
You may not think of yourself as running a business, but you’re considered self-employed if you engage in business-like activities.
Business activities include any activity where you:
- Intend to make a profit (even if you operate at a loss)
- Have regular transactions or production of income
- Make ongoing efforts to sustain, grow, or further the interests of your business
When you’re self-employed, you may receive a 1099-NEC, 1099-MISC, or 1099-K from the person or business that paid you.
But even if you don’t receive a 1099-NEC, 1099-MISC, or 1099-K, you’re still responsible for reporting all your income and expenses from self-employment on your tax return.
