Paper with words self-employment tax on a wooden background.

The key to determining if you’re self-employed is to assess whether you are in business for yourself or are the owner of your own business.

This includes any part-time businesses or private “side jobs” where you’re performing services in addition to a regular job or business.

You are also self-employed if you’re an individual who:

  • is the sole proprietor of an unincorporated business
  • works as an independent contractor, consultant or freelancer
  • is a member of a business partnership
  • owns or is part of a limited liability company (LLC)
  • earns income through investments
  • earns income through rental property

You may not think of yourself as running a business, but you’re considered self-employed if you engage in business-like activities.

Business activities include any activity where you:

  • intend to make a profit (even if you operate at a loss)
  • have regular transactions or production of income
  • make ongoing efforts to sustain, grow or further the interests of your business

When you’re self-employed, you’ll receive a 1099-MISC or a 1099-K from the person or business that paid you.

But even if you don’t receive a 1099-MISC or a 1099-K, you’re still responsible for reporting all your income and expenses from self-employment on your tax return.

Contact us today for your FREE Consultation with a tax professional. (361)579-3026


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