Understanding Disregarded Entities for Business Owners

The article explains what a disregarded entity is and how it can impact business taxes. A disregarded entity is a business entity that is not considered separate from its owner for tax purposes. This means that the owner reports the business's income and expenses on their personal tax return rather than filing a separate tax return for the business. The article also explains the tax implications of disregarded entities, including the self-employment tax, estimated tax payments, and state and local taxes. It also provides tips on how to handle taxes for disregarded entities.