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Sole-Proprietorships Formation and Operation

Your Course Price: N/A
CPE Credits
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.

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.


To receive the member price, first log into your member account. Your member discount will then be automatically applied. We can also take your registration by phone.

Your registration confirmation will be emailed to you when your payment is processed. During our busy season, this can take up to 2-3 business days after we receive your registration.

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Yes. If you have a PTIN on file with us, we will submit your hours. To insure we have your correct info, please provide your PTIN when you register for a course. Please notify us if you have recently submitted a name change request to the IRS.

Your certificate will be emailed to you within 10 business days of the completion of the course.

  • Once your registration confirmation is emailed, due to the proprietary materials and content of orders are NOT ELIGIBLE for refund, cancellation, or transfer to another NSTP course.
  • materials and presentations are intended to stimulate thought and discussion and to provide attendees 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 tax procedure, tax planning technique, 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 device, technique, or suggestion before recommending the same to a client or implementing the same on behalf of a client, or on the attendee’s own behalf.
  • materials & presentations are fully protected under copyright law. Any attempt to copy for resale, distribution, or use other than personal use for tax preparation will be fully prosecuted of the law.
Testing Policy
  • require a test for CPE. 3 attempts are allowed.
  • You have 1 (one) year from date of purchase to complete the course by taking the test.
More Information For more information regarding refund, cancellation, and complaint policies, please contact our offices at 1(800) 367-8130.