Sole Proprietorship / Self-employment Tax Compliance Information

Sole Proprietorship / Self-employment Tax Compliance Information

Tax Returns and Dates for the Self-Employed / Sole Proprietors.

A sole proprietor is someone who owns an unincorporated business.

If you are a sole proprietor use the information below to help you determine some of the forms that you may be required to file at the federal level (Internal Revenue Service).

You need to file an Income Tax Return:

You also need to file Self-Emploment Tax Returns:

You need to file Estimated Tax payments quarterly:

  • U.S. Taxpayers and Puerto Rico Residents  1040-ES, Estimated Tax for Individuals (Puerto Rico Residents need to deposit Self-Employment Tax Estimate Payments)
  • Puerto Rico taxpayers need to file Estimated Tax Payment Vouchers on a quarterly basis. These payments are for income tax estimate payments, while the 1040-ES is for Self-Employment Tax Estimate Payments.

If you the sole proprietor has employees, it must file Form 941, 940 and W-2s at the IRS and W-3s at the Social Security Administration.

If you make payments to other individuals and corporations, you might have to file a 1099 at the IRS or a 480 to the Department of Treasury of Puerto Rico:

If you are selling products and services, you need to file Sales Tax Returns.

Most of these tax returns are due on a quarterly basis, except for the Income Tax Returns, and the W-2, W-3 and Information Returns, which are due annually. While you should verify which dates apply to you and your business specifically, generally the following due dates apply to most taxpayers.

  • US and Puerto Rico Income Tax Returns are due April 15 of every year.
  • Informative Returns are due February 28 of every year. Not the 29th the years that February has 29 days.
  • W-2 Wage and Tax Statements are due January 31 of every year.

If you have a question, or comment related to the compliance of running your business as a sole proprietorship, feel free to send me an email to the contact information below. Maybe I can help!

Miguel Nicolas Moreda, CPA, CIRA

Miguel Nicolas is the founder of Porto Capital. Prior to working as a financial and restructuring advisor for small and medium-sized businesses, he worked at GFR Media Real Estate Division as Finance Manager. Before that, he worked in the Business Advisory Division at Ernst & Young US, LLP in the United States.

He is holds an undergraduate degree in accounting from the University of Puerto Rico. He also possess graduate degrees from the University of Puerto Rico School of Law and IE Business School in Spain. Miguel is a Certified Public Accountant (CPA) and a Certified Insolvency and Restructuring Advisor (CIRA).

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