402923
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Attend our Ask the Experts event about Tax Law Changes - One Big Beautiful Bill on Aug 6! >> RSVP NOW!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

jenihe
New Member

We started a sole proprietorship (photography) business. Can we pay liability ins and website fees through our personal account since we haven't made any money yet?

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

4 Replies

We started a sole proprietorship (photography) business. Can we pay liability ins and website fees through our personal account since we haven't made any money yet?

Please clarify. A sole proprietor cannot be a "we," since it only has one owner.
jenihe
New Member

We started a sole proprietorship (photography) business. Can we pay liability ins and website fees through our personal account since we haven't made any money yet?

Sorry. It's 100% my husband's business. I just usually handle bills and such and therefore said "we" as I'd be beside him looking into how to handle this as it's all new to us.

We started a sole proprietorship (photography) business. Can we pay liability ins and website fees through our personal account since we haven't made any money yet?

Yes.  If you are self employed and file schedule C it is a disregarded entity and everything is yours personally so it doesn't matter which account it comes out of.

Some general info.  You will need to keep good records.  You may get a 1099Misc at the end of the year if someone pays you more than $600 but you need to report all your income no matter how small.  You might want to use Quicken or QuickBooks to keep tract of your income and expenses.  

There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Online Self Employed  return....
http://quickbooks.intuit.com/self-employed

To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax.  You will need to use the Online Self Employed version or any Desktop program but the Desktop Home & Business version will have the most help.

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment.  You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400.  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  So you get social security credit for it when you retire.  You do get to take off the 50% ER portion of the SE tax as an adjustment on line 27 of the 1040.  The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 line 57.  The SE tax is in addition to your regular income tax on the net profit.

Here is some IRS reading material……

IRS information on Self Employment
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

Pulication 334, Tax Guide for Small Business
http://www.irs.gov/pub/irs-pdf/p334.pdf

Publication 535 Business Expenses
http://www.irs.gov/pub/irs-pdf/p535.pdf
jenihe
New Member

We started a sole proprietorship (photography) business. Can we pay liability ins and website fees through our personal account since we haven't made any money yet?

Thank you!!

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question