In fact, the business and the man are the same, it does not have a separate legal entity. Sole Proprietor Taxes.
A sole proprietorship is the most common form of business organization in the U.S. and includes over 23 million people. The “bottom-line amount” from Schedule C transfers to your personal tax return. It is the simplest kind of business structure. A sole proprietorship is an unincorporated business that is owned by one individual. Other Useful Forms for Sole Proprietorship.

Form Use this form to - W-2, Wage and Tax Statement and W-3, Transmittal of Wage and Tax Statements: Report wages, tips, and other compensation, and withheld income, social security, and Medicare taxes for employees. Furthermore, a sole proprietor is a natural person(not a legal person/entity) who fully owns and manages this type of entity.

Because you and your business are one and the same, the business itself is not taxed separately-the sole proprietorship income is your income. The business structure you choose influences everything from day-to-day operations, to taxes, to how much of your personal assets are at risk. You should choose a business structure that gives you the right balance of legal protections and benefits. You report income and/or losses and expenses with a Schedule C and the standard Form 1040. The owner of a sole proprietorship has sole responsibility for making decisions, receives all the profits, claims all losses, and does not have separate legal status from the business. Sole Proprietorship in simple words is a one-man business organisation. This type of business represents 73 percent of …