This article’s concepts should be considered independent from the layout of your business: whether it’s a sole-proprietorship, partnership, LLC, etc. We’re only talking about how you file your taxes. This article is also geared towards freelancers, subcontractors, and small companies.

Schedule C

For most people getting started on their own, there is the “Schedule C.” You pay your 15.3% Medicare & Social Security, plus your income tax quarterly, and hope everything works out on tax day. This is a great way for anyone to feel the “pain” of how much you actually pay in taxes. It can hurt so much that you’ll wonder if there’s a better way, and there is. Enter the S-Corp.
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