Self Employed Freelancer – The Simplest Way to Organize
So you want to be a self employed freelancer? Are you familiar with the various expenses that you are able to deduct as a cost of doing business?
Most freelancers operate as a sole proprietorship and file their business operations on a Schedule C on their Form 1040 personal tax return.
Some who are going into business with other freelancers, may form a partnership, a corporation, or an LLC. Each form of organization may have certain benefits over the other, so you need to review that carefully.
The sole proprietorship is usually the easiest to organize, but at tax time it can present some unusual and potential tax issues. As a sole proprietor, you don’t pay yourself a salary. View full post…