Small Business Marketing in the Digital Age
The IRS calls this “pass-through” taxation, because business profits pass through the business to be taxed on the business owner’s tax return. You report income from a business just like wages from a job, except that, along with Form 1040, you’ll need to include Schedule C, on which you’ll provide your business’s profit and loss information. One helpful aspect of this arrangement is that if your business loses money—and, of course, many start-ups do in the first year or two—you can use the business losses to offset any taxable income you have earned from other sources. A sole proprietorship is…Continue Reading