Sole Proprietorships
A sole proprietorship is an unincorporated business that is owned by one individual. It is the simplest form of business organization to start and maintain. The business has no existence apart from you, the owner. Its liabilities are your personal liabilities. You undertake the risks of the business for all assets owned, whether used in the business or personally owned. You include the income and expenses of the business on your own tax return.
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 a sole proprietor then you may be liable for:
Income Tax: form - 1040 and Schedule C or C-EZ ( Schedule F for farm business) 1040-ES
Self-employment: form - 1040 and Schedule SE
Estimated tax: form- 1040-ES
Employment taxes:
- Social security and Medicare taxes and income tax withholding. form- 941 ( 943 for farm employees)
- Federal unemployment (FUTA) tax. form - 940 or 940-EZ
- Depositing employment taxes. form - 8109
Excise Taxes: Refer to the Excise Tax web page