Tax Preparation for Sole Proprietors
Your business is personal. Your tax preparation should be, too.
If you own and run your business yourself, as a shop, a service, a trade, or a side business, its profit or loss is part of your individual return. We prepare your Form 1040 with Schedule C, including for a qualifying single-member LLC that’s taxed as a sole proprietorship.
What we prepare and report
- Schedule C: gross receipts, cost of goods sold if you sell products, and business expenses.
- Equipment and other business property, deducted or depreciated on Form 4562 as the rules allow.
- Business use of your home or vehicle, when you qualify and have the records.
- Schedule SE for self-employment tax on your net earnings.
Common tax considerations
Single-member LLCs
By default, an LLC with one owner is “disregarded” for federal income tax: its income and expenses go on the owner’s Schedule C, just like a sole proprietorship. If yours has elected a different tax treatment, tell us in your intake.
Keeping business and personal separate
A separate business bank account and organized records make it much easier to identify business income and support your deductions.
Equipment and larger purchases
Larger purchases, such as machinery, tools, computers, or a vehicle used in the business, may be deducted in the year you buy them or over several years, depending on the item and the elections available. We’ll choose the treatment that’s correct and fits your situation.
Self-employment tax and estimated payments
Self-employment tax generally applies once net earnings reach $400. With no withholding on business profit, quarterly estimated payments help you avoid penalties; we’ll help you plan them.
Documents and records to gather
- Income records: sales reports, invoices, 1099-NEC or 1099-K
- Expense records and business bank statements
- Inventory and cost of goods sold, if you sell products
- Purchase records for equipment and vehicles
- Mileage log or vehicle expenses
- Estimated tax payments you made
- Your LLC’s tax classification, if you have one
- Last year’s tax return, if you’re new to us
Related services
Independent Contractors
1099-NEC income from one or several clients.
Learn more →Freelancers & Consultants
Project income, home office and equipment.
Learn more →Deductions depend on your eligibility and records; we don’t promise a particular refund or savings. You receive a quote after we review your intake and documents.
