Schedule SE

Schedule SE is a schedule attached to Form 1040 for small business owners to calculate their self employment tax. Traditionally, Schedule SE is used by self employed individuals reporting their income on Schedule C, partners who received assigned income on a Schedule K-1, and members of a Limited Liability Company who are assigned active income via Schedule K-1.

The Sole Proprietorship – The Basics

Sole Proprietorship

Of the four business entity types, the sole proprietorship is by far the most flexible and easiest to manage. There are very few drawbacks. In the world of business, the key is to maximize profit with the least amount of risk.

Self-Employment Tax: You Can Stop Staring At Me Now!

Self-Employment Tax

Simply put, this is a tax on your net earnings from your small business operation. If you are unincorporated, you have to pay this tax. This includes those in partnership arrangements, and in any form of Limited Liability Company status. Why don’t corporations pay the tax? Actually they do, it’s just called a different name. 

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