There are many things to consider when starting a new business. The first thing you should consider is the structure of the business itself. This would mean: are you setting up a sole proprietorship, a partnership, a corporation, an “S” corporation, limited liability company, non-profit, or charity. For this consideration, you should seek the advice of a professional from a liability stand point as well as tax structuring for the new business in question.
There are a number of things that can be deducted in a self-employment business, many of which you may not consider. These could include home office expenses, business mileage, advertising, business insurance, taxes and licenses, repairs and maintenance, and travel expenses.
If you are required to make estimated tax payments, the self-employment tax is paid by making quarterly estimated payments which include federal income tax, and Social Security and Medicare taxes. Fortunately if you choose to pay this annually by April 15 the following tax year, the I-R-S penalty for not making estimated tax payments is not an inexpensive penalty and could run into a substantial amount.
That depends on the type of mistake you made on the return. Most mathematical mistakes are caught by the I-R-S during processing and will not need to be corrected. If you didn’t attach the proper documents, the I-R-S will contact you and request the missing information. If you did not report all of your income or claim a credit, you will need to file an amended or corrected return Form 1040X.