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How is a Sole-Proprietor Taxed?

April 26, 2017sole-proprietor TAXED

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How is a Sole-Proprietor Taxed?

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A sole-proprietor files a schedule C with their personal form 1040. Net earnings are subject to income tax. Also, net earnings are subject to self-employment tax (Social Security and Medicare) at a rate of 15.3%, which is computed on schedule SE and filed with the form 1040.