Sole Proprietorship What is a sole proprietorship? A sole proprietorship is a pass-through entity for a business with only one owner. Generally, contractors and freelancers choose to operate as a sole proprietorship due to its low setup costs. How is a sole proprietorship taxed? The business entity itself is not taxed; all profits and losses
Tag: LLC
The Basics of Operating as an LLC
Perhaps you operate your small business as a sole proprietorship and want to form an LLC to protect your assets. Here are the basics of operating as an LLC.
When are LLC Members Subject to Self-Employment Tax?
LLC members commonly claim that their distributive shares of LLC income aren’t subject to self-employment tax. But the IRS has been cracking down on LLC members it claims have underreported SE income.