As a business owner, you are responsible for filing and paying taxes on your income. This topic will cover the basics of what you need to know to manage and file your taxes with confidence.
All immigrants, regardless of legal status, are able to become an independent contractor or start a business and file taxes using a Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), or Employer Identification Number (EIN).
Earning money for your services as a business owner is exciting! It can be tempting to start spending your money on things you want and need, but don’t forget about your obligation to pay taxes. As an independent contractor or business owner, it is your responsibility to file and pay federal, state, and local taxes on all income. This topic will help you become familiar with tax processes that can become easily manageable once you know how things work.
When you work for yourself, there are no deductions from your paycheck for income taxes, Social Security, or Medicare, as would be the case if you were working as an employee. As an independent contractor or small business owner, you are held responsible for paying federal and state income tax, Social Security and Medicare; this combined tax is called self-employment tax for independent contractors.