How to Pay Taxes for the Self-Employed

Paying taxes for the self-employed is essential for any entrepreneur, independent contractor, sole proprietorship or partnership. The self-employed pay taxes either annually or quarterly.  Some of these forms are daunting, requiring a skilled bookkeeper and accountant. That said, the final responsiblity to pay taxes is upon the entrepreneur.

• Have an accountant and a bookkeeper to verify tax forms.


• Self-employment tax obligations
. Any person in the classification of the introduction is obligated to pay self-employment taxes.


• Forms
: The 1040-ES is the primary self-employment form for most businesses. 


• Sole Proprietorships use the Schedule C form. 


• If the sole proprietorship earns less than $5,000.00 per year, use the Schedule C-EZ.


• Corporate forms, C-Corp, S-Corp, LLC all have different forms.


• Husband and wife businesses are considered to be a qualified joint venture.


• Fill out the appropriate forms. If you have difficulty, the IRS offers free consultation.


• Make a duplicate of all completed forms.


• Be sure to have a record of all tax deduction.


• The IRS website lists legal small business tax deductions. 
  Examples include:
  *  Medical, dental expenses and group medical insurance
  *  All foreign income taxes
  *  All foreign real estate taxes
  *  All personal property taxes
  *  All sales taxes
  *  Qualified motor vehicle taxes
  *  Business use of car and home
  *  Business trips and business meals in restaurants
  *  Interest expense
  *  Charitable contributions
  *  Educational expenses
  *  Casualty, natural disaster, theft and vandalism of business property.


• Many people choose to use a tax preparation software, such as Turbo-Tax to assist in preparing taxes. 


• On line services are available. Some charge a fee, some are free for certain tax classifications.


• Submit forms and pay taxes:
  * Mail in a check.
  * On-line credit or debit card.
  * Walk in to your local IRS office.