Beware the Taxes of Self-Employment

Senior executive in home office with two monitors and keyboard on leather desk and looking at paperwork on deskThat 15.3% is likely to be a stunner.

By Barry J. Friedman, CPA

Your clients are self-employed if they’re in business for themselves – including a part-time business. That means they’re also their own tax manager!

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Your clients can be self-employed as a sole proprietor/an independent contractor, or a member of a partnership or of a limited liability company. As such, they need to file an annual income tax return and pay estimated taxes throughout the year on their income.