The simplest form of business entity, owned and operated by one person. Instantly receive an Employer Identification Number (EIN) online from the IRS to open a business bank account. Report income and deductions from the law practice on Schedule C of your individual tax return (IRS Form 1040). Net income is taxed at your individual income tax rate and subject to an additional self-employment tax of 13.3%. In D.C., you may wish to register a trade name for a fee of $55.
Tax Tip – Because no asset protection is provided, debts of the business are debts of the owner (and spouse if filing taxes jointly).