Beware the Taxes of Self-Employment
You can be self-employed as a sole proprietor/an independent contractor, or a member of a partnership or of a limited liability company. As such, you need to file an annual income tax return and pay estimated taxes throughout the year on your income. Also, you may have to remit self-employment (SE) tax payments as well with your estimated income tax payments. The SE tax is a Social Security and Medicare tax — being self-employed, you have to pay both the employer and employee portions.
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