Wednesday, January 5, 2022

Sole Proprietorships

A sole proprietor is someone who owns an unincorporated business by himself or herself. However, if you are the sole member of a domestic limited liability company (LLC), you are not a sole proprietor if you elect to treat the LLC as a corporation.

If you are a sole proprietor, use the information in the chart below to help you determine some of the forms that you may be required to file.

IF you are liable for:THEN use Form:
Income Tax

1040, U.S. Individual Income Tax Return 

or  1040-SR, U.S. Tax Return for Seniors

and Schedule C (Form 1040 or 1040-SR), Profit or Loss from Business

Self-employment taxSchedule SE (Form 1040 or 1040-SR), Self-Employment Tax
Estimated tax1040-ES, Estimated Tax for Individuals
Social Security and Medicare taxes and income tax withholding

941, Employer's Quarterly Federal Tax Return

943, Employer's Annual Federal Tax Return for Agricultural Employees

944, Employer's Annual Federal Tax Return

Providing information on Social Security and Medicare taxes and income tax withholding

W-2, Wage and Tax Statement (to employee)

and W-3, Transmittal of Wage and Tax Statements (to the Social Security Administration)

Federal unemployment (FUTA) tax940, Employer's Annual Federal Unemployment (FUTA) Tax Return
Filing information returns for payments to nonemployees and transactions with other personsSee Information Returns
Excise TaxesRefer to the Excise Tax webpage

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