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Questions tagged [sole-proprietorship]

For questions related to sole proprietorship.

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0answers
46 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 ...
0
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1answer
56 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 ...
6
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1answer
290 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. ...
2
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4answers
234 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 ...
0
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1answer
40 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 ...
2
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1answer
56 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 ...
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0answers
24 views

Can a sole proprietorship survive with just a saving account in India? [duplicate]

I understand that the current accounts in India provide a facility of unlimited number of cash withdrawals restricted only by the funds within the account (some may also offer overdraft facilities). ...
2
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1answer
111 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 ...
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0answers
62 views

Sole proprietorship GST/HST rebate claim

As a sole proprietor (only owner, employee) with a GST registrant number, can I claim GST/HST rebate for business expenses incurred? CRA refused my claim for the last 3 years as I am not an employee ...
4
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1answer
70 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'...
1
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1answer
78 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 ...
2
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0answers
200 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 ...
2
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1answer
71 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. ...
4
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0answers
60 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 ...
2
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1answer
304 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 ...
3
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2answers
109 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 ...
0
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1answer
375 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,...
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0answers
315 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) ...
2
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0answers
55 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, ...
4
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1answer
3k 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 ...
0
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1answer
68 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 ...
3
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1answer
281 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 ...
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2answers
173 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 ...
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2answers
8k 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 ...
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0answers
39 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 ...
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0answers
72 views

How to include personal spending in private/sole trader accounting?

I am a private/sole trader (in Finland, but it doesn't really matter I think). I use my personal bank account for my private trader activities. I work as a designer and don't employ anyone. I have ...
2
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1answer
103 views

I filed for a Sole Proprietor EIN, but made no money. Do I need to file any tax forms?

Do I need to file any tax forms, with no money earned, for a sole proprietor with an EIN? I requested an EIN thinking that I was going to use it, but it has taken longer to get to a point of ...
2
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1answer
254 views

Initial investment in sole proprietorship

I've sole proprietorship business in Ontario. So far I've been doing web site and custom software development. Then I open up an account for stock trading under same business name. And put some ...
0
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1answer
47 views

How to find a business consultant that would ensure that all your business activities are legal and compliant with all regulations?

I have been helping a friend of mine who is owner of a small Beauty Salon. In the last year I have been helping her with so many legal-related things that it is taking too much of my time and I want ...
0
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1answer
104 views

Do I need to file schedule C if I had a net loss?

I ran a business in 2015 (sole proprietorship) that had a net loss, and I have discontinued that business. Do I need to file a schedule C for it, assuming I do not want/need to offset other earnings ...
0
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1answer
136 views

Transfering my wife's personal allowance - Zero tax?

According to my calculations, my annual income of 30k as a sole trader will be taxed at 0 pounds, but I'm wondering if this is wrong? 30,000 minus two personal allowance is 13,800 taxable income. ...
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2answers
163 views

Should I use EIN for business once it changes structure from Partnership to Sole Propietorship?

There were two partners in general partnership (50:50 share). One partner left and I took over all his share. Effectively business structure changed from General Partnership to Sole Proprietorship. ...
3
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1answer
114 views

How to report house used for 100% business?

Self employed as sole proprietor, was using 1/3 of home as home office. Have moved across state line to new house on July 1st, but keeping old house solely to see existing clientele for the ...
1
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1answer
165 views

Can running a side business (sole proprietor) at a loss along with a full time employee job help reduce total taxable income?

Let's say someone makes 40k at their w2 employee job. But they want to start a business, so they invest some money into equipment ($8000) the first year so they can actually start their business. Does ...
4
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1answer
296 views

As a Sole Proprietor, will “employer” Solo 401k contributions count towards gross income?

With a Solo 401k, I can contribute up to 25% of my income as "employer contributions." Do these contributions count toward my adjusted gross income? Example I make $100,000 in 2015. I am 55 years ...
3
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1answer
262 views

What happens to your spouse's sole proprietorship if they die?

In this case, it is a construction company located in the United States. It is owned by one spouse, all bank accounts/credit cards etc. are co-signed by both. However, the business is a sole ...
3
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2answers
321 views

If earning as freelancer, is it better to be a Sole Trader or Limited Company?

I am going to be staring freelancing. Is it better if i set up as a Sole Trader or Limited Company? I wont have many expenses.
6
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1answer
860 views

What are FICA taxes for a sole proprietor in the United States

Background I am asking this question as a true sole proprietor that has no other income from a second job or previous employer. As I understand it FICA taxes is an easier way to refer to your Social ...
3
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1answer
112 views

Payslips for assistant in the UK

I operate as a sole trader. I have an assistant that I pay on a regular basis. Do I need to provide them with payslips? If so, what information is legally required to be shown on the payslip other ...
4
votes
2answers
1k views

Formation of S-Corp for Gambling Trade

Does anyone have personal experience with incorporating an S-Corporation for the gambling trade? In cases where the gambling activity is consistent and produces sufficient income (versus, say, an ...
0
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1answer
78 views

How do I claim HST compensation on my personal Ontario income taxes?

I have a couple thousand dollars of HST compensation to declare on my Ontario Income Tax for a sole proprietor business, but I am not sure specifically how to declare the amount on my taxes as income ...
2
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1answer
266 views

Pros/cons of drawing income in retirement from sole-owner corporation vs. sole-proprietorship?

What happens from a tax perspective at retirement time for the sole-owner/employee of a Corporation versus Sole-Proprietorship? In the case of a Corporation, I assume that the owner pulls money from ...
3
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1answer
1k views

How much taxes do corporations have to pay on dividends they receive from other companies?

I am trying to figure out whether it would be beneficial for me to convert my sole-proprietorship to a corporation. In doing my research, I need to figure out how corporations get taxed on dividends ...
2
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1answer
137 views

Why big clients want the contractor to be incorporated before giving them work

Why do banks and other companies in Canada that employ independent contractors to do IT work insist that the contractor be incorporated, as opposed to a sole proprietorship?
7
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1answer
476 views

Solo-401k interaction with employer sponsored 401k. Limits of contribution from Schedule C income

I'm quitting a job at the end of this year. I want to start a solo-401k for all my schedule C income and I have a couple of concerns: If my employer were to, for some reason, pay me in 2015 some ...
4
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1answer
145 views

Student freelancer (sole proprietor) and taxes

(I have researched online for more than 12 hours now, and still have some questions. Please don't be hard on me if they are too basic.) I am starting my part-time freelance career now (too late for ...
2
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1answer
108 views

End-of-year purchase deductions

I'm a sole proprietor / contract employee (developer) in Texas (United States) and am planning to make a new hardware purchase. I remember being told that purchases made in the last quarter of the ...
2
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1answer
492 views

Deducting side work sole proprietorship expenses from regular employment earnings?

I have a day-job which gets me a salary. I'm about to start some websites on the side with the intention of making money off advertising. For the time being, I plan to remain an unregistered sole ...
2
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3answers
519 views

Do I need to file tax form 1099 misc for my royalties?

I've self-published a book and have sold a few hundred dollars worth of books from the back of my car. (I know I need to pay sales tax on these books.) I have a simple sole proprietorship business in ...
0
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1answer
234 views

Deducting SEP-IRA contributions as a sole proprietor with no employees

Is it possible to deduct SEP-IRA contributions from a Schedule C Form 1040? I was a sole proprietor with no employees. It seems like if I had employees, I would deduct it on line 19, for Pension and ...