Define Fillable Fields In Legal Utah Startup For Sole Proprietorship Forms For Free

And, as is the case with other types of business entities, sole proprietors are also subject to self-employment taxes. As a sole proprietor, instead of filing a separate tax return for your business, you report your business income on IRS Form 1040, using Schedule C to report your business profit or loss.

Step 4 ? Research business license requirements After doing so, you'll want to research any local requirements, those enforced by the county or city where you're doing business. Good news, Utah doesn't require a ?general? business license at the state-level for Sole Proprietors.

In the case of a sole proprietorship, you declare your profit and loss on Schedule C of Form 1040. But, to file Schedule C, you'll have to qualify first. The conditions to qualify are: Your goal is to engage in business activity for income and profit.

Sole proprietors need to file Form 941, Employer's Quarterly Federal Tax Return (or Form 944, Employer's Annual Federal Tax Return), for the calendar quarter in which they make final wage payments. They check the box and enter the date final wages were paid on line 17 of Form 941 or line 14 of Form 944.

There are also no fees involved with forming or maintaining this business type. If you want to operate a Utah sole proprietorship, all you need to do is start working. However, just because it's so easy to get started doesn't mean there aren't some additional steps you should take along the way.

Sole proprietors file personal income tax returns using Form 1040 and report their business income on Schedule C. Individuals must determine their taxable income by subtracting expenses from total income.