Sole Proprietor Tax Preparation

Those who need to prepare a schedule C fall into two categories: First, those who went into business for themselves with the purpose of creating self-employed income. The other are those who did “side work” during the year and found themselves receiving a 1099-MISC form that they have no idea how to handle.

The good news is that in either case, we’ve made the process relatively simply and the filing of your taxes fast and accurate. As with any business we handle, from SubCorporations all the way through Partnerships and to Sole Proprietors, we will help you understand the process, file your taxes and be certain you do not overpay Federal, State, or FICA taxes.

Our process is simple, we start by helping you understand how to properly categorize your income and expenses, we then prepare your returns and set you up for future years armed with the knowledge and processes to make each subsequent year easier than the last.

Honestly, my very favorite clients to work with are those self-employed people. They are always the “go-getters” in my clientele and have the attitude to match.  Please note, while I will only prepare taxes for honest businesspeople, that doesn’t mean you need to be organized – we will help you figure that out. But it does mean that if you are looking for someone to look the other way on your income, that’s not a good fit for us.  We write honest taxes that leave no stone unturned.  This helps you pay the lowest tax possible while keeping you out of trouble with the IRS.

What paperwork do I need?

In addition to your usual personal income tax documents, please add up each of the following categories for the year:

• Advertising
• Commissions and fees
• Contract labor (we will help you file your 1099’s if needed)
• Business insurance
• Liability insurance
• Legal and professional fees
• Office supplies and expenses
• Postage
• Repairs and maintenance of business equipment
• Supplies (not inventory)
• Government fees and licenses
• Meal and entertainment and expenses (Christopher will discuss record keeping and deductibility with you)
• Utilities
• Cell phone expenses
• Internet service provider cost
• Web hosting and design
• Data and cloud services
• Wages
• Payroll taxes
• Major purchases (do not total these, instead give them to us individually with the date and amount)

The mileage on your business vehicle(s) is deductible. We will explain the record keeping requirements so you can get the best possible deduction. This is one of the largest deductions for self employed individuals. Feel free to call our office if you have any questions regarding this.