am I a sole proprietor or an s-corp?

The infamous topic. One, to my surprise, most business owners don’t know.

You are a sole prop IF you - are the only owner, have never filed form 2553 with the IRS (tax form), and report the business on what’s called a Schedule C of your personal tax return (due on April 15th). It’s worthy to note, if you’re a single member LLC and do NOT elect S-corp status, you’re treated as a sole prop.

You are an S-corp IF you - formed an LLC or INC with your state, filed form 2553 (tax form) and the IRS accepted it, and file Form 1120-S at tax time (a separate tax filing from your personal return, due on March 15th).

Clear as mud?

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