Self-employed? What the IRS thinks.

For tax reporting purposes, the IRS has several classifications of working individuals including:

• Contractor
• Employee
• Self-employed
  

The first two categories were covered in a previous blog post.  In this one we review the IRS rules on what it considers self-employment.

The IRS considers a person as self-employed if:

The individual has a trade or business as a sole proprietor; or

The individual is a member of a partnership or limited liability company (LLC) that files a form 1065

Persons might also be considered as self-employed if owning a part-time business in addition to a regular job.  The weekend handyman or computer tech with his own tools and customers might be considered self-employed despite having a similar employee position with a company.

A complete summary of all employee listings is on our web site:  http://www.the-small-biz-pro.com




For additional details, please consult the IRS small employment web site: http://www.irs.gov/businesses/small/