I am a Sole Proprietor and recently created and Employment Identifictation Number, how do I pay taxes?

I'm New to the Game and would appreciate some advice:





I know that as a Sole Proprietor, I can add my business earnings to my personal earnings and report everything to IRS as individual income; however, if my business earnings are reported under my Employment Identification Number to IRS and my W2 earnings are reported under my Social Security Number, how do I formally report both as individual income to make sure that IRS is aware of the sources of funding?





Also, if I have Short Term Stock gains and Business Earnings how do I report both using the Estimated Capital Gains forms. Do I need separate forms for each SSN and EIN, or can I just add everything together and pay it under SSN?





I would greatly appreciate a knowledgeable answer here. No guesses please. I'll do my own research anyway..but wanted to get a head start. Thank You.

I am a Sole Proprietor and recently created and Employment Identifictation Number, how do I pay taxes?
If you have employees, and/or if you are selling something that would be subject to sales tax, make sure that you get hooked up into your state's tax system as well as the federal. Make sure you understand the taxes you are required to collect from your employees and customers, and taxes and fees that you owe the government. If you fail to file returns or collect the appropriate amounts you could end up owing a LOT in penalties.





Consulting a CPA might be wise, rather than trying to figure it all out yourself, if you are in these areas.
Reply:it's all broken down on your forms. you file a schedule c for your business expenses
Reply:First, your S.E. income will be reported on Schedule C. You will enter the Fed Emp. ID Number on that schedule in the box indicated. The W-2 is reported as always.


S-T gains will be reported on Schedule D. No separation is necessary unless they are different classification (Long-term vs short-term). Business gains and losses are reported on a different form, but will flow to Schedule D and then to your 1040. Good luck!
Reply:you have to file a schedule C
Reply:I am a Sole Proprieter also. I have been doing my taxes myself for the past several years. You can file all your income together on on form 1040. The great part is you don't even need an EIN. The IRS recognizes your SSN as the same thing as an EIN. If you are going to do your own taxes, I would strongly recommend considering Turbo Tax. I have used several different types of tax software and Turbo Tax has been the best by far. Their results are guaranteed.You don't even have to know anything about taxes, it has step by step instructions a child could follow. They have also gotten me back more money than any other software or CPA I used prior to their product. Hope this helps you and good luck with your business.

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