Question by just me: Do I file my individual taxes and small business taxes together as one filing or separate?
I have a “small business” (I’ve paid the sunbiz.org annual fees, the business has it’s own EIN #, I have a business bank account, and do work as a sub-contractor). I also have another job where I have taxes withdrawn and work as an employee for a corporation. I filed my taxes all together on turbotax under my individual social security number under the “home and business” filing category. Should I have done this, or should I have filed my sub-contractor work separately with the EIN number as the social, and then filed the tax form for individuals separately (filing as though for two separate people rather than one)?
Best answer:
Answer by NYTAXEXPERT
You are not giving us enough information. If your small business is incorporated as a Corporation or an S-Corporation, the business must file its own tax return. If the business was never incorporated and you are the sole owner of the business the income should be reported on your personal tax return on Schedule C. If it is an LLC and you are the sole owner of the business it is considered a disregarded entity and the income should be repored on your personal tax return – Schedule C
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if this business is a self employment business, it is reported on Sch C and SE with your 1040
your SSN would have been sufficient for this sole proprietor business, you would need an EIN if you paid employees or you organized a Partnership or corporation and those entities would file their own separate returns, 1065 or 1120
If the business is you, and you alone, and is not formally organized (corporation, LLC) then the activity is reported on your Schedule C with the Schedule SE for the self-employment tax (both sides of FICA or commonly called social security). Since you have an EIN (Employer Identification Number) you should have included it on the Schedule C, but the IRS can process the return without it. It helps keep things straight when there is more than one Schedule C on a return.
What matters is how your business is ORGANIZED. If it’s a sole proprietorship, that’s self-employment income and all filed under your personal tax return. You only file a separate “business” tax return if your company is incorporated. An EIN is NOT a “social.”
Sounds like you did it right. Bbut if your business is a partnership, S-corp or C-corp, the business must file its own return.