Sole Proprietorships

A sole proprietor is someone who owns an unincorporated business by himself or herself. However, if you are the sole member of a domestic limited liability company (LLC), you are not a sole proprietor if you elect to treat the LLC as a corporation.

If you are a sole proprietor use the information in the chart below to help you determine some of the forms that you may be required to file.

IF you are liable for: THEN use Form:

Income Tax 1040 (PDF) and Schedule C (PDF) or C-EZ (PDF)

Self-employment tax Schedule SE (PDF)

Estimated tax 1040-ES (PDF)

Social security and Medicare taxes and income tax withholding

941 (PDF) or 944 (PDF)

8109 (PDF) (to make deposits)

Providing information on social security and Medicare taxes and income tax withholding

W-2 (PDF) (to employee)

W-2 (PDF) and W-3 (PDF) (to the Social Security Administration)

Federal unemployment (FUTA) tax

940 (PDF)

8109 (PDF) (to make deposits)

Filing information returns for payments to no employees and transactions with other persons

See Information Returns

Excise Taxes Refer to the Excise Tax web page

References/Related Topics

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Other Useful Forms for Sole Proprietorship

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Publication 334, The Tax Guide for Small Business (for Individuals Who Use Schedule C or Schedule C-EZ)

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Publication 583, Starting a Business and Keeping Records

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Husband and Wife Businesses

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Business Structures

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Distinguishing Between Self-Employed Individuals and Independent Contractors

Business Structures

When beginning a business, you must decide what form of business entity to establish. Your form of business determines which income tax return form you have to file. The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation. A Limited Liability Company (LLC) is a relatively new business structure allowed by state statute. Legal and tax considerations enter into selecting a business structure.

* Sole Proprietorships

* Partnerships

* Corporations

* S Corporations

* Limited Liability Company (LLC)

Residential

Residential real estate means all Australian urban land other than commercial properties (that is offices, factories, warehouses, restaurants, shops). Acquisitions of 'hobby farms' and 'rural residential' blocks by foreign interests are included in the residential real estate category.

Foreign purchasers intending to acquire real estate in Australia must seek prior approval from the Government through the Foreign Investment Review Board unless specifically exempted by the Foreign Acquisitions and Takeovers Regulations.

Sources of Additional Information

Information on employment opportunities for sales worker supervisors may be obtained from the employment offices of various retail establishments or from State employment service offices.

General information on management careers in retail establishments is available from:

* National Retail Federation, 325 7th St. NW., Suite 1100, Washington, DC 20004.

Information about management careers and training programs in the motor vehicle dealers industry is available from:

* National Automobile Dealers Association, Public Relations Dept., 8400 Westpark Dr., McLean, VA 22102-3591. Internet: http://www.nada.org

Information about management careers in convenience stores is available from:

* National Association of Convenience Stores, 1600 Duke St., Alexandria, VA 22314-3436.

Related Occupations

Sales worker supervisors serve customers, supervise workers, and direct and coordinate the operations of an establishment. Workers with similar responsibilities include financial managers, food service managers, lodging managers, office and administrative support worker supervisors and managers, and medical and health services managers.

OES Data

For the latest wage information:

The above wage data are from the Occupational Employment Statistics (OES) survey program, unless otherwise noted. For the latest National, State, and local earnings data, visits the following pages:

# First-line supervisors/managers of retail sales workers

# First-line supervisors/managers of non-retail sales workers

Earnings

Salaries of sales worker supervisors vary substantially, depending on a worker’s level of responsibility and length of service and the type, size, and location of the firm.

Salaried supervisors of retail sales workers had median annual earnings of $33,960, including commissions, in May 2006. The middle 50 percent earned between $26,490 and $44,570 a year. The lowest 10 percent earned less than $21,420, and the highest 10 percent earned more than $59,710 a year. Median annual earnings in the industries employing the largest numbers of salaried supervisors of retail sales workers were as follows:

Building material and supplies dealers $35,820

Grocery stores 33,390

Clothing stores 33,140

Gasoline stations 29,270

Other general merchandise stores 28,870

Salaried supervisors of nonretail sales workers had median annual earnings of, $65,510, including commissions, in May 2006. The middle 50 percent earned between $48,900 and $94,670 a year. The lowest 10 percent earned less than $34,840, and the highest 10 percent earned more than $135,270 a year. Median annual earnings in the industries employing the largest numbers of salaried supervisors of nonretail sales workers were as follows:

Professional and commercial equipment and supplies merchant wholesalers $80,650

Wholesale electronic markets and agents and brokers 78,260

Machinery, equipment, and supplies merchant wholesalers 65,660

Postal service 58,640

Business support services 45,490

Compensation systems vary by type of establishment and by merchandise sold. Many supervisors receive a commission or a combination of salary and commission. Under a commission system, supervisors receive a percentage of department or store sales. Thus, these supervisors’ earnings depend on their ability to sell their product and the condition of the economy. Those who sell large amounts of merchandise or exceed sales goals often receive bonuses or other awards.