Skip to main content

2E. Sole-Proprietorships Formation and Operation

Course Price: N/A
CPE Credits
May 27, 2021
Course Time
10:00 AM
Advanced Preparation
Course Level
Knowledge of Federal Tax Law
Paul La Monaca CPA, MST

Course Description

This course will address the following issues:

  • The lion's share of small businesses in the United States are operated as sole-proprietorships.

  • Over 25,500,000 individual Forms 1040's include a Schedule C.

  • The IRS estimates that over $122 Billion of the Annual Tax Gap is a result of sole-proprietors not reporting all of their income and overstating their deductions on the Schedule C. In addition, there is another $57 Billion of underpaid self-employment tax by sole-proprietorships.

  • The federal tax benefits attributable to operating a trade or business as a sole-proprietorship include:

  • Ease of formation and liquidation

  • Availability of the §280A Home Office Deduction on Form 8829 creating a larger deduction for operating a business vehicle

  • Ability to hire spouses and children and deduct medical benefits on the Schedule C and reduce the family's overall tax liability.

  • The ability of working with a spouse as a Qualified Joint Venture (QJV) and not be subject to the compliance rules of a Partnership and the requirements to file a IRS

  • Form 1065 and issue Schedule K-1s

  • The ability to have a private pension plan to maximize income tax benefits.

  • Allowing for the deductibility of the 20% §199A Qualified Business Income Deduction on new IRS Form 8995.

This course also provides an understanding of what is a business for income tax purposes, versus a hobby under the §183 Hobby Limitation rules.

  • IRS: Federal Tax Law Topics 2 CPE
  • CTEC: Tax Law 2 CPE
  • NASBA: Taxes 2 CPE

Learning Objectives

At the conclusion of this course the Tax Professional will have the knowledge needed to properly advise clients on the formation and operations of a Schedule C Sole-proprietorship.

In addition, the Tax Professional will be able to assist their clients on determining if a sole-proprietorship is the proper tax entity for their small business.

Administration Policies: NSTP follows strict administrative policies
Late Registration
  • Registrations must be received no later than 7 days prior to the seminar date.
  • Registrations received after this date will be subject to a $35 late fee.
  • NSTP provides refunds to registrants up to 7 days prior to the date of the course. For those registrants canceling within 14 days prior to the date of the course NSTP will allow attendance at another seminar site. If there are extraordinary circumstances NSTP will allow the participant to attend a future education course. An administrative charge of $25 will be assessed if canceled. For more information regarding refund, cancellation and complaint policies, please contact our offices at 800-367-8130
  • NSTP reserves the right to cancel any program or course for circumstances that are not under direct control of NSTP. If a course or program is canceled, participants will be refunded 100% of their registration fee.
  • We do not accept walk-in attendees. Payment must be received in advance of the class. Classes may not be retaken without payment.
  • Seminar materials and seminar presentations are intended to stimulate thought and discussion and to provide attendees the useful ideas and guidance in the areas of federal taxation and administration. These materials as well as the comments of the instructors do not constitute and should not be treated as tax advice regarding the use of any particular tax procedure, tax planning technique or device or suggestion or any of the tax consequences associated with them.
  • Although the NSTP has made every effort to ensure the accuracy of the materials and the seminar presentation, neither the author, the presenter nor the National Society of Tax Professionals assumes any responsibility for any individual's reliance on the written or oral information presented during the presentation. Each attendee should verify independently all statements made in the materials and during the seminar presentation before applying them to a particular fact pattern and should determine independently the tax and other consequences of using any particular device, technique or suggestion before recommending the same to a client or implementing the same on a client's or on his or her own behalf.
Attendance Policy
  • Only paid registrants are able to attend seminars. In consideration of your fellow attendees, guests will need to depart before the session begins. The seminar lunch is for paid registrants only and is included in the registration fee.