Tag Archives | sole proprietors

Tax Considerations When Starting a New Business

While many businesses have been forced to close due to the COVID-19 pandemic, some entrepreneurs have started new small businesses. Many of these people start out operating as sole proprietors. Here are some tax rules and considerations involved in operating with that entity. The Pass-Through Deduction To the extent your business generates qualified business income […]

Continue Reading

Rules of Deducting Business Losses

Sole proprietorships and pass-through entity structures, which include partnerships, S corporations and certain limited liability companies (LLCs), provide owners with some valuable tax benefits, such as avoidance of double taxation and the potential ability to deduct losses from the business on their individual tax returns. However, the Tax Cuts and Jobs Act (TCJA) has placed […]

Continue Reading