Schedule C, Solo Returns

The Sole Proprietor, (Schedule C) Tax Return

The Sole Proprietor or Solo is simplest legal business structure in existence.  Unlike other legal entities, the sole proprietorship is not a legal entity but is an extension of the owner.  As a result it is also the simplest business entity to form.

Some pitfalls to having a sole proprietorship form of business:

  • The owner of the business is 100% personally liabilities of the debts of their sole proprietorship and judgments from lawsuits.
  • The profits of the company flow directly to the owners personal federal income tax return.Only natural people can own a sole proprietorship.
  • Sole proprietors do not survive the owners death or incapacity.
  • Raising capital is very hard in a sole proprietor business structure.

But there can be some advantages to having a sole proprietorship form of business:

  • Commingling personal and company assets does not have legal repercussions like the other entity forms do.
  • Sole proprietors do not pay unemployment tax on themselves (but they do have to pay unemployment taxes on their employees).
  • No official paperwork has to be created and you do not have to register with the state to start a sole proprietorship.
  • The business return is attached to the owners personal return thus negating the need for two separate returns.

Zagotti & Burdette understands the sole proprietorship business structure and the tax options available to those who chose this form of business.  We have many years experience guiding clients through the range of tax options available based on their individual circumstances and business plans.

We don’t just prepare your sole proprietorship tax return, we look at the return holistically to provide tailored solutions just for you and your business.

Call (832) 800-3347 today to schedule your free appointment today.