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December 16, 2023
Question

I an a sole prop and finally making money this year. I don't know if I should just show a profit in my company and pay taxes, or pay myself W-2 or 1099

  • December 16, 2023
  • 1 reply
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1 reply

December 16, 2023

Hi there, Steve. Let me provide you with some helpful information.

 

When it comes to deciding whether to show a profit in your company and pay taxes or to pay yourself through a W-2 or 1099, I recommend consulting with a tax professional or contact the Internal Revenue Service (IRS) since this involves financial and legal requirements. In addition, they'll be able to help you and give some guidance regarding on what's the best approach for your business and personal situation. 

 

Moreover, you can view this guide to learn more about Sole proprietorship taxes: Sole proprietorship taxes: Beginner’s guide and tips and tricks

 

The comment section is open for any clarifications or concerns regarding sole proprietorship taxes. Just add a comment below and I'd be willing to help you once more.