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Samantha here and welcome to the business finance coach on YouTube and in today's video I'm going to answer this question from Nicki's makeup tutorial which is on one of my videos about quarterly estimated taxes and how to make your payments, so I referred to setting up FTPS which is a site that processes electronic federal tax payment system now this site is perfect if you're going to be making payments on a regular basis because you have an account you can log into it's really easy to make payments over the phone on the website it is more of a process so if you only need to make a one-time payment you can watch my next video on direct pay which is an easier solution for a one-time payment so back to Nicki's question she says I signed up for FTPS as a business I got the pin and enrollment letter which they actually send you in the mail and I logged in, but now I'm stuck because the pull down menu doesn't have a tax code for us now that I'm watching your video should we have signed up on the FTPS as an individual instead of a business since we are self-employed, so the answer is yes when you're self-employed as a tax term when you work for yourself you may get 1099 s from people, or you may just work and collect money you're what's called a sole proprietor and a sole proprietor means that your business isn't separate from you, and it helps you keep things simpler so for taxes you're self-employed, and you don't have to file a separate business form now when you enroll on the FTPS website you do therefore enroll as an individual because your tax form is form 1040 which is the individual tax form when you're self-employed a Schedule C that reports your income and expenses is just attached to your personal return with the net income coming onto your turn just like when you're an employee, and you put that w2 income on there as well, so that's correct now I'm sure that this has happened to quite a few people especially if you're a single member LLC because you in that case you did create a separate business, but there is an exception for the LLC that says when you're a single owner you're still can be default taxed as self-employed the simplest thing for you to do so it was really helping small businesses to create that separate legal entity for legality purposes, but you have to maintain the accounting records, or it doesn't exist and then for taxes to still be self-employed, so you don't have to deal with filing a separate business return which is a substantial amount of work or cost of paying someone so in that case you would still sign up for FTPS as an individual if your tax the self-employed okay all right so let's say you do this you did it wrong I'm going to show you some instructions this is the FTPS website if you google publication four nine zero this is the IRS instructions now some instructions in here on page three talk about right yeah the very good instructions cancelling a payment well this is also the same process you go through...
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