The type of business entity (see last week’s tip) determines what taxes you must pay and how to pay them. Sole proprietorships and partnerships pay self-employment (social security/medicare taxes) on the profit on their personal returns. Corporations and S corporations pay employment taxes for employees in addition to income taxes on the profit of the corporation.

 
This information is provided in an effort to help you gather and organize the information necessary to file your individual or small business income tax return. While these financial tools are not a substitute for financial advice from a qualified professional, they can be used as a starting point in your decision making process.