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Questions tagged [sole-proprietorship]

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Content creator tax obligations

I create music and upload to YouTube. I bought equipment, editing software, etc for my band last year (2023) but I just started releasing the videos on Youtube this year (2024). Can I still claim the ...
Jonathan's user avatar
  • 105
1 vote
2 answers
154 views

Sole proprietor paying expenses from personal account

A couple of business invoices have been debited off my personal bank account instead of the business account recently and I am wondering about how to account for this. In essence, I don't really need ...
aldavigdis's user avatar
4 votes
1 answer
64 views

Sales tax on inventory consumed during R&D

I'm considering setting up a sole proprietorship to sell kits (electronics and crafting) that I design. It's my understanding that, in most cases, I would be able to get a exemption certificate that ...
Adrian McCarthy's user avatar
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0 answers
126 views

What are the tax implications of owning an Airbnb rental?

My partner and I (unmarried) recently bought a house in Seattle, and are planning to rent out the finished basement for extra income using Airbnb. The city requires us to register for a business ...
user118012's user avatar
1 vote
0 answers
47 views

Starting a second business as a Sole Proprietorship, S-Corp, or LLC with a DBA?

I'm planning on launching a business to provide voiceover professional services. In professional voiceover, your name is your calling card, so my first inclination would be to simply do everything as ...
Joel Graff's user avatar
2 votes
0 answers
96 views

Can my wife use my income/credit card to buy products for her self-employed business (UK)

I am in full time employment in the UK (and have no other sources of income). My wife does not currently work (since having children). She will shortly be registering as self-employed/sole-trader and ...
yonetpkbji's user avatar
0 votes
1 answer
78 views

Schedule C 1040: How to list expenses related to payments to foreign companies/remote workers?

Where should I enter foreign independent contractors' payments/expenses (remote work so no 1099) in my schedule C form? Should I list it under "Legal/Professional Fees" or should I put it ...
Luis Cruz's user avatar
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1 answer
1k views

If my business organized a competition and gave winners money as prize, can I deduct this?

I'm a sole proprietor and gave out around 1000$ in prizes for my business' event, either through paypal or e-transfer. How can I deduct this as a business expense? There's not really a receipt.
goodbyeworld123's user avatar
1 vote
1 answer
114 views

Self-Employed near retirement needing to start a retirement account

My father is 58, with no retirement accounts. He's run a sole-proprietorship for most of his life with 0-1 employees and doesn't have too much in savings. We're exploring the options of a ...
BLaZuRE's user avatar
  • 313
1 vote
2 answers
114 views

How to record converting privately used appliances to business use for tax purpose?

I have an investment property in California that needs a new washer and dryer. I file the revenue on my personal tax return (for better or worse). I would like to get a new set for me, personally, and ...
Matthew's user avatar
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3 votes
1 answer
431 views

Schedule C: where to report revenue split and professional supervision fees for a therapist?

My wife is building a business as a therapist. She has signed an agreement with an established private practice whereby they provide certain services/benefits to her -- things like office space, ...
Brian Rogers's user avatar
2 votes
2 answers
86 views

PPP 2.0: Can businesses that were not operational in 2019 use 01/01/2020-02/29/2020 period for average payroll cost calculations?

Official SBA PPP 1.0 FAQ had this answer: Question: What time period should borrowers use to determine their number of employees and payroll costs to calculate their maximum loan amounts? Answer: In ...
user4910112's user avatar
1 vote
1 answer
180 views

my work permit expired, I have a Florida profit corporation (Inc), can I receive income via 1099-SEC? and declare taxes?

I was working in the US as a resident and had a valid work permit. I had to travel in December 2019, then the pandemic hit, I was stuck abroad and my work permit expired. I have a Sole Proprietor ...
becunim's user avatar
  • 11
2 votes
2 answers
68 views

Need access to funds that were earned & taxed prior to establishing LLC

In 2020, I worked as a sole proprietor and kept a 'business' account for my earnings. These were taxed twice - both as personal income and business income. Beginning 2021, I created an LLC (with me ...
Kristin Paxton's user avatar
2 votes
0 answers
32 views

Getting paid by my own disregarded entity in Idaho, do I need to file an Idaho personal income tax return

No physical assets nor contracts in Idaho itself. I do not live or physically present in Idaho. So reading through the income tax documents: Idaho source income is income from: Transactions or ...
Jackson's user avatar
  • 195
-1 votes
1 answer
47 views

Journals for credit with suppliers

How would I keep a record of payments with an insurance supplier (Zego if that helps) if they bill on the basis that the account gets topped up with credit, then they deduct from the credit on a pay ...
Dave Smith's user avatar
0 votes
1 answer
44 views

Converting a personal business into a Company & its taxation advantages

I've often read opinions about taxation advantages of converting a personal business to a company but a point which confuses me is wouldn't the lower corporate tax rate be offset by the income tax ...
curious_cat's user avatar
3 votes
3 answers
175 views

Can a client pay directly into an IRA/401K?

I have a leftover 401K from my previous employer (in fact I have two of them from two different employers). Currently, I am drawing some income as a sole proprietor of a management consulting company....
Five Bagger's user avatar
  • 9,785
0 votes
2 answers
132 views

How to transition a sole proprietorship to an LLC?

There are several questions about sole proprietorship versus LLC. Suppose I have a sole proprietorship right now, and I form a single-member LLC tomorrow (March, partway through the year), treated as ...
dfrankow's user avatar
  • 637
2 votes
1 answer
291 views

EIN Needed When Filing Form 5500-EZ For Solo 401K

I am a sole proprietor and opened a solo 401k with TD Ameritrade at end of 2018 and then funded it before the tax filing deadline in 2019. I understand that Form 5500 (5500-EZ) needs to be filed ...
Maverick's user avatar
1 vote
1 answer
100 views

Income-Tax and Side-Hustle Providing Internet Related Services

I'm looking at starting a side hustle that provides solely software related services. Like web-hosting, app development, etc. In the near future, I'm not looking for any sizable profit (or any for ...
KGlasier's user avatar
  • 153
3 votes
1 answer
114 views

Sole trader GST for small income business in Australia (aside from main salary)

Trying to find out how to handle this case. Next year will be even more fun as I've moved to New Zealand. For tax purposes, I'm a resident in Australia for FY2018. All good. I earned x as salary, ...
Mark Mayo's user avatar
  • 135
1 vote
1 answer
100 views

Declaring income when self-employed

As described here, I earn extra money (around $7000 per year) from a second job, in which I am running a business as a sole trader. Due to the nature of the work, I am mostly paid in cash, and deposit ...
1123581321's user avatar
1 vote
1 answer
282 views

How much can I deduct for my home office?

I'm a sole proprietor with an office in my apartment and I'm confused on how to calculate my deductions. Suppose the office is 300 sq ft. The apartment is 600 sq ft. Rent is $2000 per month. I see I ...
se123's user avatar
  • 49
3 votes
2 answers
2k views

Do I need business license and account to work as a software contractor

I started a software development contract and decided to open a separate bank account just for this activity. The bank gave me a list of required documents needed when opening a business account for ...
Ady's user avatar
  • 195
-3 votes
1 answer
201 views

Which non-mathematical subject could I tutor to make the most money? [closed]

Assuming I can learn whatever and I have respected teaching credentials I'm thinking LSAT, but perhaps the subject with the highest ceiling would be prepping high schoolers of the ultra-wealthy? I'm ...
Joseph E Munson's user avatar
3 votes
2 answers
574 views

I'm self employed. Can I contribute to my previous employers 401k?

I have a 401(k) from my previous job. I left and was unemployed, but now I'm self-employed. Is it possible to contribute to that former 401(k)? Or do I have to create a Solo/Individual 401(k)?
se123's user avatar
  • 49
1 vote
1 answer
153 views

Calculating Gross from a desired Net

I have a sole proprietorship and I'm helping out a friend. We have an agreement where I told him what I needed to net each month and I can invoice for that. If I need to net $6000 each month, how do ...
djibouti33's user avatar
0 votes
1 answer
80 views

How should I charge a personal Bank Account for a Business transaction? (UK)

I am currently performing some ongoing work for a Sole Trader, where a monthly Direct Debit has been set up for the monthly fees. The Direct Debit was set up with their Business Account. Upon each ...
Craig's user avatar
  • 101
6 votes
1 answer
339 views

Share 1099 payment with another sole proprietor

Jane and Sally are independent contractors who provide education consulting to public school systems. They are separate business entities (both sole proprietors) but they frequently partner together. ...
Brian from QuantRocket's user avatar
2 votes
4 answers
329 views

How to keep track of revenue and expenses of a small business that I rarely visit?

I'm a programmer looking to invest some money into opening a very very small restaurant which will be run by my friend (who's a professional restaurant manager) with occasional help from family ...
Lynob's user avatar
  • 143
0 votes
1 answer
199 views

Sole Proprietor LLC quarterly estimated tax payment

This is going to be my first quarterly estimated federal tax payment for a single member llc (treated as disregarded entity- sole proprietor). I see online that for annual taxes, I need to fill out ...
aajkaltak's user avatar
  • 151
2 votes
1 answer
76 views

Disposing of hardware item from current assets, is the reduction in assets posted to equity or special loss account?

I'm disposing of an old laptop that is broken and completely unusable. Let's say it was purchased for $1000 before taxes, already been accounted for in Current Assets since the date of purchase, and ...
zbinkz's user avatar
  • 117
2 votes
1 answer
141 views

How do I disburse funds that were paid to my personal bank account from a job to another person?

Me and my brother are doing work for a friend. The friend paid me the full amount, and I am supposed to give 50% to my brother. How do I handle this to ensure that I do it correctly and don't get ...
Nate L's user avatar
  • 121
3 votes
1 answer
128 views

Can a person running two (non-incorporated, sole-proprietor) businesses write off expenses from one and contribute to a solo 401k for the other?

I think this will be the last year I can get away with not using a tax professional, but I'd love to go one more year before I have to. My wife (filing jointly) is currently freelance consulting. Let'...
neminem's user avatar
  • 166
1 vote
1 answer
106 views

Capital allowance and balancing charges on UK tax return

I'm trying to fill in the 'Capital allowance and balancing charges' page, thing is I'm pretty sure I don't have anything to charge in this yet the website won't accept £0.00 as a valid answer, can ...
Thermatix's user avatar
  • 249
2 votes
0 answers
362 views

Freelancer, Schedule C, Deductions for MEALS in 2018-2025

This question is specific to sole proprietor freelancers who (a) network with other freelancers, (b) sometimes outsource their work to other freelancers but never employ someone, and (c) file a 1040 ...
RJo's user avatar
  • 511
2 votes
1 answer
88 views

At what amount of income do you pay less tax with a Limited Company as opposed to sole proprietor?

From my understanding the personal allowance for the 2016-2017 tax year is: £11,000 which I wouldn't pay any tax on. I keep reading that a limited company is a better choice if you have high income. ...
Chris Stryczynski's user avatar
4 votes
0 answers
89 views

Should I create a simultaneous Part-time Sole Proprietorship and Part-time single-member S-Corporation?

I am self-employed and my business has two distinct parts: Engineering and Design - which makes $50k income / year Manufacturing and Sales - which makes $150k income / year I am currently running ...
Adam B's user avatar
  • 151
2 votes
1 answer
2k views

Can I transfer self-employed income into LLC?

Currently my situation is (I'm 18 this is my first year that I'm going to need to deal with taxes) that based off what I've already made so far this year I'm assuming I will make around $50,000 by the ...
thehaxdev's user avatar
3 votes
2 answers
220 views

Sole proprietor: How to separate tax payments for home and business

Following the generally accepted standard that one should always keep their business and personal banking accounts separate, how can a sole proprietor make separate tax payments, when the IRS requires ...
user avatar
0 votes
1 answer
1k views

How do you set up current year bookkeeping based on previous year balance sheet and profit and loss items?

I'm setting up this year's accounting ledger for a sole proprietorship. It used to be done by CPAs in the past but I decided it's time to bite the bullet and start doing it myself. All is going well,...
zbinkz's user avatar
  • 117
1 vote
0 answers
553 views

Australian - living overseas - freelancer, digital nomad - income tax

I am an Australian resident and just about to head off to travel Asia for the next year or two. I would like to become self-employed with an Australian ABN and work as a freelancer (digital nomad) ...
Joe Bloggs's user avatar
2 votes
0 answers
67 views

Covering all legal/tax bases for sole proprietorship selling apps?

I'm just starting a sole proprietorship for making & selling iPhone/Android apps. I expect buyers all over USA/world. As a traveling performer, my personal location is 50% Florida 50% California, ...
Marc Gelfo's user avatar
5 votes
1 answer
8k views

Deducting business expenses paid for by gift card

Let's say I need to purchase a $1000 computer for my sole propietorship / side business. I can pay $1000 and deduct it on my schedule C, but what if I have the opportunity to pay $800 for a $1000 gift ...
Lee88's user avatar
  • 153
0 votes
1 answer
74 views

New small business starter here, need help with IRS 1099 info

I'm a current college student in the Dallas/Fort Worth area, who is looking to gain some extra income, due to current my unfavorable employment situation. I recently set up a dedicated blog and signed ...
AlternateSteve90's user avatar
3 votes
1 answer
790 views

As a sole proprietor can I charge a fee for being paid by check or card

My Background I am a sole proprietor (freelance programmer) and usually receive payment for projects by check. I send an invoice to my clients with a breakdown of my work and payment terms. Because of ...
Blizzardengle's user avatar
1 vote
2 answers
212 views

Do developers in India pay income or sales tax from income from the sale of apps?

I'm a developer based in India who wants to sell apps, either on one of Apple's app stores or directly. Do I need to pay VAT on the proceeds, or income tax, or both? Do I need a TIN? Where can I ...
Kartick Vaddadi's user avatar
4 votes
2 answers
23k views

Why do sole proprietors in India generally use a current account?

I was told that sole proprietors in India use a current account for their business, rather than a savings account, to avoid interest. I don't understand why — if you account for the interest properly ...
Kartick Vaddadi's user avatar
2 votes
0 answers
64 views

Am I eligible for a CDC/504 loan as a sole proprietor?

I have a sole proprietor software consultant business, and I am thinking of buying a small office because it would be a better investment than my current office rental. I was looking into loans for ...
k-den's user avatar
  • 121