Sole proprietorship tax services that keep you moving
We prepare Schedule C, review business deductions, and plan estimated taxes so your business income fits into a complete, accurate personal return.
* We will contact you to arrange a call about your situation, service scope, and pricing. Specific tax advice and ongoing planning are provided under an engagement.
Sole proprietorship tax services
One owner. A business return within your personal return.
A sole proprietorship is an unincorporated business owned by one individual. For federal income tax purposes, its business income and expenses generally flow onto the owner’s individual return rather than a separate corporate return.
Mraz Tax Solutions LLC provides sole proprietorship tax preparation and planning for consultants, independent contractors, freelancers, and small business owners. We connect your business records with the rest of your income, deductions, and tax payments.
Part of our complete business tax preparation and planning services for Orange County and clients nationwide.
How we help
Practical support for your business taxes.
Preparation, planning, and advice that connect your business decisions with your tax return.
Schedule C Preparation
We reconcile income and business expenses, prepare Schedule C and related forms, and integrate the results with your individual federal and state tax returns.
Self-Employment & Estimated Taxes
We calculate applicable Social Security and Medicare taxes and review whether you need estimated payments. We coordinate those estimates with wages, withholding, and other household income.
Business Deductions & Records
We review ordinary and necessary business expenses, including eligible home office, vehicle, supplies, and depreciation deductions. We explain which receipts, mileage logs, and other records support the return.
Owner Income & Retirement Planning
We help distinguish owner draws from deductible expenses and review eligible retirement contributions, health insurance deductions, and qualified business income deduction opportunities.
State & Multi-State Filings
Working across state lines can create additional reporting obligations. We review where you live, work, and earn business income, along with California sourcing and filing requirements.
Planning for Business Growth
We compare the tax and administrative effects of continuing as a sole proprietor or moving to an LLC, partnership, or corporation as your ownership, income, and goals change.
Decisions worth planning for
Keep the simple structure. Plan for the important details.
A straightforward business structure still needs good records and a tax plan. We help you make decisions before a new hire, major purchase, or change in ownership affects your return.
Owner Draws Are Not a Salary Deduction
Moving money from your business account to your personal account generally does not create another deduction or change your taxable profit. Sole proprietors are not their own W-2 employees. We help separate business expenses, personal spending, and owner withdrawals.
An EIN Does Not Change Your Tax Structure
Many sole proprietors without employees can use an SSN, but an EIN is required in certain situations, including generally when you hire employees. State licenses, local permits, and DBA registrations are separate questions from federal tax classification.
Review Losses and Future Entity Choices
Business losses may offset other income, but at-risk, passive activity, excess business loss, and other rules can limit deductions. If your business adds an owner or your needs change, we compare the tax consequences of a new structure rather than assuming it automatically saves tax.
More tax guidance for self-employed professionalsQuestions & answers
Frequently Asked Questions
Business structure and tax treatment are connected, but they are not the same thing. We help you understand which rules apply to your business and its owners.
Request a free initial consultation Do I need a federal form to create a sole proprietorship?
Generally, no federal entity-formation form is required when you start an unincorporated business by yourself. State or local licenses, permits, or fictitious business name registrations may still be required. An EIN or DBA does not turn the business into a corporation.
Can I use my Social Security Number for the business?
Many sole proprietors without employees may use their SSN for federal tax purposes. You may need an EIN if you have employees, certain retirement plans, or other filing obligations. We review your circumstances; obtaining an EIN alone does not change your tax classification.
Can a business loss reduce tax on my other income?
An eligible Schedule C loss generally flows to your individual return, but its deductibility is subject to applicable limitations and whether the activity is a business conducted for profit. We review the records and at-risk, passive activity, and excess business loss rules before determining the allowable deduction.
When should I consider an LLC or corporation?
A change may be worth evaluating when you add owners, grow earnings, hire staff, or want a different legal structure. We compare the tax treatment, state obligations, payroll requirements, and ongoing costs. Liability and formation questions should also be coordinated with your legal advisor.
Get in Touch
Have any questions?
Let's talk.
Request a free initial consultation to discuss your situation, service scope, and pricing. We will contact you to arrange a call. Specific tax advice and ongoing planning are provided under the terms of an engagement.
Office visits are by appointment. We accept tax-document drop-offs after a signed engagement agreement and by prior arrangement. Please request an appointment before visiting.
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