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Tax Law (Questions About Taxes)/Taxes for Sole Proprietor


Hello Mr. Stancil-

Could you tell me exactly what tax forms are needed when filing as a sole proprietor for a dba carpentry business please?

Also, as far as a business account, can you think of what to do when the owner does not want a bank account?  Do you have any ideas what can be used as a substitute to an actual business bank account, but works the same way, which is retaining the business financial and income activities?

Thank you for any help you can give, appreciate it.



Thanks for your question.

As a sole proprietor you would file a Schedule C with your 1040. If you have a home office, use Form 8829 to calculate that deduction; depreciation goes on Form 4562.  All of these flow into the Schedule C. You would also need Schedule SE in order to pay the self-employment tax.

One of the criteria for the IRS to treat a sole proprietorship as a business and not a hobby is to have a separate business bank account.  I will not retain a client who does not have one - no real substitutes available.  You have to separate business and personal financial transactions.

You should keep a record of income and expenses on a program such as QuickBooks.

Hope this helps.

John Stancil, CPA

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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