Who is a Sole proprietorship, and who is "self employed"?

[brianhood]

(concerning the American engineers)

I'm trying to figure out what i need to do for my studio. I asked a pretty big engineer on here what they do for taxes, and they said they just claim whatever work they get from labels on their taxes, and get the tax forms from the labels to file as Self Employed.

I know some other engineers register as a Sole Proprietorship.

What do you guys do? Also, do you guys know the pro's and cons of each?

I know it's extremely hard(or impossible) to get a home loan when you're self employed. Does registering as a Sole Proprietorship remedy this at all?

just some questions i've been eager to figure out recently(as i'm trying to purchase a house).

 

[seditz740novaprospect]

i have a normal business license for a tax id number,,, and pay taxes based on how much i claim per quarter ... but will be moving to a llc to prevent some liability issues soon

 

[colonel kurtz]

LLC is a good way to go...or even better, an s-corp so that you don't get double-taxed

 

[garry666]

youve got to look at how much your gona be making first of all, if its just a few bucks here and there self employed is fine it really doesnt matter what u do, but if your gona be making some serious coin there are alot of loopholes out there to help u with the taxes, such as emloying family underage family members that dont make enough money to pay taxes and havin them repay u the money under the table, i didnt say that btw. As for the slef emplyed thing its not so bad to get a loan, well theyve probally tightened that whole thing up a bit by now as thats the reson they went under right, they would just tell self employed people to claim that they made enough money to be aproved.

 

[brianhood]

youve got to look at how much your gona be making first of all, if its just a few bucks here and there self employed is fine it really doesnt matter what u do, but if your gona be making some serious coin there are alot of loopholes out there to help u with the taxes, such as emloying family underage family members that dont make enough money to pay taxes and havin them repay u the money under the table, i didnt say that btw. As for the slef emplyed thing its not so bad to get a loan, well theyve probally tightened that whole thing up a bit by now as thats the reson they went under right, they would just tell self employed people to claim that they made enough money to be aproved.

If your self employed, you have to show "the past two years tax returns, complete with all schedules" and "2 years of W2's" for proof of income...

and unfortunately im the oldest child, and no underage family live near me.