The Planner

Paying Taxes When You’re Self-Employed

Scroll down to see more
Arrow down button
The Planner illustration graphic
Login
Close popup button
April 22, 2017
By
Core Group US
Tax Advice
Paying Taxes When You’re Self-Employed


When you own your own company, it will be your responsibility to ensure that all taxes are filed appropriately. However, this is often easier said than done, so if you are self-employed and have questions about filing taxes for your business, it is critical to contact an experienced tax preparation professional who can address your concerns.

Business Type


The type of business that you own will in large part dictate how your taxes must be filed. For instance, sole proprietors must report business income and expenses on Schedule C forms. Furthermore, they are responsible for paying self-employment taxes, such as Social Security. Those who have business partners, on the other hand, will need to file as either a partnership or a corporation. Partnerships are required to file an information return with the IRS that records business transactions but do not need to pay income tax. The partners would then use Form K-1 to report partnership income. Business owners who file as a corporation must file as either a:

C-corporation
S-corporation
C-corporations are recognized as separate tax-paying entities, which means the business could be eligible for special deductions. However, it also means that any profit earned by the company is taxed at the corporate level and again when it is distributed to shareholders. Like partnerships, the income of S-corporation business owners flows through to the taxpayer’s personal tax return.  

Tax Deductions


After obtaining a separate tax ID for their business, self-employed taxpayers can begin to assess whether they satisfy the requirements of any business-related deductions, which could include:

The home office tax deduction
Deductions for automobile expenses, although this requires a written log of business miles
Deductions for office supplies
Deductions for travel expenses
In order for these deductions to apply, business owners must keep careful records and retain copies of all receipts showing business-related purchases. Finally, business owners are also responsible for paying payroll taxes and sales tax in addition to federal and state taxes on profits.

Contact an Experienced Tax Preparation Team Today


Business owners are responsible for filing taxes on behalf of their company, which can be difficult and time-consuming, so if you are self-employed, please contact the CORE team today.

Ask Us a Question
Seems like no one has asked a question yet. Be the first one to do so by filling the form below
Thank you for engaging with us!
We’ll review your question and notify you as soon as we post our answer as quickly as possible. If you have any other questions, you can reach us at your earliest convenience
Oops! Something went wrong while submitting the form.
More Related Content
We couldn't find any related content.
Corey using his computer

Ready to learn how to lower your taxes with better planning?

Nobody can predict the future, but we can get pretty close. We can show you what your future looks like when you have Core Group in your corner.

Schedule Free Consultation
Contact Us
We respect your Privacy. The information you provide will be used to answer your question or to schedule an appointment if requested.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Close popup button