Under IRS standards, a self-employed person is one who engages in business as an independent contractor or sole proprietor or who is a member of a business partnership. Even very casual, part-time business activity constitutes self-employment.
Sole proprietors need not operate a registered business or have a Federal Tax Identification Number from the IRS to be considered self-employed. A person who holds a full-time job and independently sells a service on the weekends, for example, is both an employee and a self-employed person. Whenever a person is in business for oneself, the income earned as a result of that business activity is considered self-employment income. Self-employment income is subject to taxation according to IRS regulations.Learn More
A silent partner in a business partnership is a behind-the-scenes investor, someone who does not take an active role in the company's management. This person's identity might be completely unknown, thus the "silent" designation.Full Answer >
Three critical success factors that can make or break a business partnership are trust, goal alignment and continuous self-evaluation. Other factors include drive and complementary skill sets.Full Answer >
There is no single reason a business partnership succeeds or fails, but there are certain factors that can make or break a business partnership. Here are three critical ones.Full Answer >
Structured self-employment refers to the organization of a business activity into a legal entity, such as a limited-liability company, by a self-employed individual. Other common self-employment structures include sole proprietorships, partnerships and corporations. Each self-employment structure has advantages and disadvantages in terms of its formation, operation and taxation requirements.Full Answer >