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Sole Proprietor

Updated: May 2

An individual who owns a business but is not legally separate entity from the business, so they are personally liable for any debts or financial claim against the business.


Business income from a sole proprietorship is reported on the Individuals Form 1040 tax return using schedule C. (self-employment tax)

This includes both the employer and employee portion of Medicare (2.9%) and Social Security. (12.4%)


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