Skip to main content
No. of Recommendations: 1
Or, can I simply take this as income for myself straight out, being taxed with the Schedule C, rather than the standard income tax?

My big problem is that I'm not even sure where to start looking for information about my current situation. If someone could point me to a place to start and a place to continue my learning.

As a sole proprietorship, the money you make is taxed as income. It doesn't matter if you pay yourself or not, the income above your expenses is taxable. I suggest you check out our tax area:

You also may want to discuss incorporation with an accountant. Since you have a few people working for you, this may be worth looking into for a number of legal and tax reasons. Also, if you have people working for you, there is the issue of whether they should be considered employees, or subcontractors. Also, money you pay to subcontractors must be reported to the IRS on a form 1099 if it's over a certain amount.

Just from seeing what you posted, it sounds like you are doing quite well. It may be worth the money to have a consultation with an accountant now to save you big tax issues later.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.