How are sole proprietorships taxed?

From a tax perspective, a sole proprietorship is not considered to be distinct and separate from the owner, as would be the case for a Corporation. So what does that mean? Basically, you, as the owner of a sole proprietorship, will not have to file a separate tax return for the business. Rather, you would report any income generated from the business, as well as any losses you incurred from the business, on your individual tax return. It is important to mention here that you will be taxed on the business income in the same year that it was received, whether the income was withdrawn from the business or not.

The Conroe business attorneys at Garg & Associates will meet and consult with each client individually, discuss their business strategies, and arrive at a solution that best suits their needs. If you need a skilled business attorney, you owe it to yourself and to your business to consult with attorneys who have your best interests as their top priority. The Garg & Associates attorneys proudly serve all of North Houston and are simple a phone call away.

Please contact our office to see how we can assist you. Learn more about our Areas of Practice.