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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 (PDF) and Schedule C (Form 1040), Pofit or Loss from Business(PDF) or Schedule C-EZ (Form 1040), Net Profit from Business (PDF)
Self-employment tax Schedule SE (Form 1040), Self-Employment Tax (PDF)
Estimated tax 1040-ES, Estimated Tax for Individuals (PDF)
Social security and Medicare taxes and income tax withholding 941, Employer’s Quarterly Federal Tax Return (PDF)

 

943, Employer’s Annual Federal Tax Return for Agricultural Employees (PDF)

944, Employer’s Annual Federal Tax Return (PDF)

8109-B, Federal Tax Deposit Coupon (PDF) (to make deposits)

Providing information on social security and Medicare taxes and income tax withholding W-2, Wage and Tax Statement (PDF) (to employee)
and W-3, Transmittal of Wage and Tax Statements (PDF) (to the Social Security Administration)
Federal unemployment (FUTA) tax 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return (PDF)

 

8109-B, Federal Tax Deposit Coupon (PDF) (to make deposits)

Filing information returns for payments to nonemployees and transactions with other persons See Information Returns
Excise Taxes Refer to the Excise Tax web page

References/Related Topics

Emil Estafanous, CPA, CFF, CGMA