Contact UsCould you tell me exactly what tax forms are needed when filing as a sole proprietor for a dba carpentry business please? Also, as far as a business account, can you think of what to do when the owner does not want a bank account? Do you have any ideas what can be used as a substitute to an actual business bank account, but works the same way, which is retaining the business financial and income activities?
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Tax Professional Answers
John Stancil
As a sole proprietor you would file a Schedule C with your 1040. If you have a home office, use Form 8829 to calculate that deduction; depreciation goes on Form 4562. All of these flow into the Schedule C. You would also need Schedule SE in order to pay the self-employment tax.
One of the criteria for the IRS to treat a sole proprietorship as a business and not a hobby is to have a separate business bank account. I will not retain a client who does not have one - no real substitutes available. You have to separate business and personal financial transactions.
You should keep a record of income and expenses on a program such as QuickBooks.
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512 weeks ago
One of the criteria for the IRS to treat a sole proprietorship as a business and not a hobby is to have a separate business bank account. I will not retain a client who does not have one - no real substitutes available. You have to separate business and personal financial transactions.
You should keep a record of income and expenses on a program such as QuickBooks.