Travel, Meals, and Entertainment If you are an independent contractor you can deduct expenses for travel, meals, and entertainment. These expenses are deducted on Schedule C. They might seem straight forward, but the IRS has a lot rules for these expenses. Here is a chart from the IRS website that lists what expenses are deductible: Meals
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Tax Deductions for Car and Truck Expenses

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Line 9 on Schedule C Car and truck expenses are one of the most common deductions for people who are paid as a contractor. It is also one that can get you in trouble if you get audited. There are two ways to deduct car and truck expenses and you have to pick one. ***NO
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What is Self-Employment Tax?

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Self-employment tax is made up of Social Security and Medicare taxes that individuals who are self-employed pay on their net income. People who are not self-employed have Social Security and Medicare taxes withheld from their wages. People who are employees only pay half of these taxes. The employer pays the other half. Payroll Taxes for
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Do I need to Incorporate My Small Business?

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I think one of the biggest reasons to not incorporate a business is simplicity. It’s simpler to be a sole proprietor. A sole proprietorship has the least amount of paperwork and administration. Anyone can start a business as a sole proprietor at any time. Nothing must be filed with the government or the IRS. Bookkeeping
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What tax forms do I need for my S Corporation?

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1120S U.S. Income Tax Return for an S Corporation An S Corporation passes corporate income, losses, deductions and credits through to the shareholders for tax purposes. They do not pay income tax but they mustreport the income, losses, deductions, and credits to the IRS on an 1120S form. 1120S Schedule K-1 Each one of the
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What tax forms do I need for my Corporation?

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Corporation Tax Forms 1120 U.S. Corporation Income Tax Return Regular Corporations pay income tax on the net income that they earn and the tax form they file is the 1120.  Corporations must file an 1120 every year whether they have a profit or not. The tax form is due on the 15th day of the
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What tax forms do I need for my Partnership?

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Partnership Tax Forms 1040 U.S. Individual Income Tax Return You are still required to file a 1040 individual tax return even though the partnership files it’s own return. A partnership must file an annual information return to report the income, deductions, gains, losses, etc., from its operations, but it does not pay income tax. Instead,
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What tax forms do I need for my Sole Proprietorship?

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Which tax forms you need to file for your business depends on what type of business “entity” your formed. Here is a link to a post on types of business entities. Your business entity is different from your business type or what your business does. They types of business entities are: Sole Proprietorship Partnership Corporation
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Do I need an Income Statement?

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If you are starting a business or you already have a business, you will need some sort of income statement. An income statement will help you manage your business by letting you know if you made money or not. It will also let you know how much money you spent to get the income you
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