Form 1040 is used to report your taxes as a sole proprietor. Since there is no legal distinction between you, the individual, and your business, you report any income earned through a personal tax return.

As an S corporation, all of the earned income from your practice is passed through to shareholders. This means that as an employer, you don’t pay federal income taxes. 



You only pay taxes on the income you earned as an employee. You report this income on your personal tax return.

Still not sure if your practice is a Sole Proprietorship or an S Corporation? Set up a free consultation with our team.