FORTUNE Small Business:

Tax troubles: Separating business income

A sole proprietor turns to FSB for help filing his income taxes.

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(FORTUNE Small Business) -- Dear FSB: Can I register as a sole proprietor of a small business and be taxed separately from my wife's and my income tax? Or do I have to include the income from the small business on our federal and state forms? If so, what forms will I have to use?

- Anthony, Detroit

Dear Anthony: According to Walter Robinson from Walter Robinson & Associates LLC, a Chicago firm that provides tax and accounting services to small businesses, you cannot be taxed separately from your marital income.

The sole proprietorship should be reported in schedule C, one of the attachments to the income tax return form 1040. You can find the schedule C form and instructions for filling it out at the IRS website.

At the state level, Robinson says that Michigan takes your gross adjusted income from the federal tax return, so there shouldn't be any other tax paperwork to file regarding your sole proprietorship.  To top of page

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.