When you run a business as a sole proprietor, you enjoy the freedom of running it your own way. While you can take your decisions independently, the responsibilities are also all yours. There are certain implications from the tax perspective as well. The IRS tax norms consider the business and the sole proprietor as a single entity. This means that you will be taxed differently, with some additional taxes as well as extra reporting requirements. At the same time, you may also be eligible to claim certain tax deductions. This sounds confusing, doesn’t it? It’s enough to make your head spin. Obviously, you will need to brush up your tax basics if you want to comply with the tax norms properly. Click here for some key tax tips and facts that sole proprietors should follow. Business expenses Like any business entity, a sole proprietorship business to have operating expenses. These are the ones that they need to incur as a part of the normal running of the business. The IRS lets you claim them on the tax return, provided that they consider them as “ordinary and necessary”. The common expenses that come under this category include the cost of equipment,…