Small Business Taxes
The taxes that surprise the self-employed: self-employment tax and both halves of FICA, quarterly estimated payments, 1099 versus W-2, what you can write off, the home-office deduction, how LLCs are actually taxed, the QBI deduction, recordkeeping, and paying contractors on a 1099-NEC. The framework is durable, but the dollar figures change every year. Always confirm current amounts at irs.gov.
All Small Business Taxes guides
- Depreciation Basics for Small Business Owners
How depreciation, MACRS, Section 179, bonus depreciation, and the de minimis safe harbor work — and why depreciation recapture matters when you sell.
- The Home Office Tax Deduction
Who qualifies for the home office deduction, the simplified vs. actual-expense methods, and why it doesn't automatically trigger an audit.
- Business Recordkeeping and How Long to Keep Records
IRS rules on what business records to keep and how long — 3 years as a floor, longer for payroll and property, indefinitely in some cases.
- Self-Employment Tax, Explained
Self-employed people pay 15.3% self-employment tax - both halves of Social Security and Medicare - on top of income tax. Here's how it works.
- Small Business Tax Deductions: What You Can Write Off
The "ordinary and necessary" test, common deductible categories, and the recordkeeping and classification mistakes that trip up small business owners.
- What to Do When You Can't Pay Your Business Taxes
File your business tax return on time even if you can't pay - here are the real IRS options, and why payroll tax debt is different.
- Quarterly Estimated Taxes for the Self-Employed
No employer withholds tax for the self-employed, so you generally must pay the IRS four times a year. Here's how estimated taxes and safe harbor work.
- The Self-Employed Health Insurance Deduction
How self-employed people deduct health, dental, and long-term-care premiums above the line, and the limits that apply.
- Worker Classification Audits and Section 530 Relief
What happens when the IRS or a state audits your contractor classifications, and how Section 530 relief can protect you if you qualify.
- Business Meals and Travel: What You Can Deduct
Business meals are generally 50% deductible with a business purpose; entertainment is not. Travel away from home is deductible; commuting isn't.
- Multi-Member LLC Taxes: Form 1065 and K-1s
A multi-member LLC files Form 1065 and issues K-1s - you're taxed on your share of profit even if it isn't distributed to you.
- How LLCs Are Taxed
An LLC has no tax classification of its own - the IRS taxes it by default as a sole proprietor or partnership unless you elect otherwise.
- 1099 vs. W-2: What the Difference Means for Taxes
1099 vs. W-2 explained plainly: who withholds taxes, who owes self-employment tax, and what a business must do to pay a contractor correctly.
- The QBI Deduction for Pass-Through Businesses
How the 20% QBI deduction works for pass-through owners, who's eligible, the SSTB service-business limit, and where to verify current thresholds.
- Business Losses and What You Can Do With Them
A business loss can offset your other income, but only after clearing basis, at-risk, passive-activity, and IRS loss-limit rules.
- Deducting the Business Use of Your Car
How to deduct business car use: standard mileage rate vs. actual expenses, the first-year choice, commuting rules, mileage logs, and Section 179 basics.
- What Happens If Your Small Business Gets Audited
What triggers an IRS audit, the three audit types, real notices vs. scams, and how to respond and protect your rights.
- State Tax Registration When You Do Business in Another State
Doing business across a state line can trigger three separate duties: entity registration, income tax nexus, and payroll withholding. Here's how they differ.
- Estimated Tax Penalties and the Safe Harbor Rule
Why self-employed people get hit with IRS underpayment penalties, and how the 90%/100% safe harbor rule lets you avoid them.
- The Employer's Payroll Tax Filing Calendar
Once you have an employee, payroll taxes run on a fixed federal rhythm of deposits and filings. Here's the framework and where penalties bite.
- Retirement Plans for the Self-Employed: SEP-IRA and Solo 401(k)
SEP-IRA, Solo 401(k), and SIMPLE IRA compared for the self-employed - how they work, deadlines, and how hiring changes the rules.
- Hiring Independent Contractors and the 1099-NEC
How to collect a W-9, issue Form 1099-NEC, and handle backup withholding when you pay independent contractors.
- Form 1099-K and Payment Apps: What Sellers Need to Know
A 1099-K reports gross payments, not profit. Learn what it means, why the threshold keeps changing, and how to fix a wrong form.
- Hobby or Business? What the IRS Looks At
The IRS profit-motive test that decides hobby vs. business: the nine regulatory factors, the Section 183 safe-harbor presumption, and how to document a real profit intent.
- Deducting Business Startup Costs
Costs paid before opening are capitalized, but tax law lets you deduct a limited amount now and amortize the rest. Confirm current caps on irs.gov.
- Accountable Plans and Reimbursing Yourself Correctly
How to reimburse yourself tax-free for home office, mileage, and business costs once you're an employee of your own corporation.
- Section 179 and Writing Off Business Equipment
How Section 179 and bonus depreciation let you write off business equipment now instead of over years, and their limits.