Small Business Stimulus Package Sole Proprietor

Demand for the popular paycheck protection program ppp has been massive since the application window opened on april 3.

Small business stimulus package sole proprietor. Sole traders are able to claim the government s new jobkeeper payment. This includes sole proprietors who report income and pay taxes on a schedule c in their personal tax return independent contractors who collect 1099 misc forms and gig economy workers who take on call jobs provided by companies such as uber lyft taskrabbit and instacart. In order to access the scheme business owners must prove a 30 percent or more revenue decline.

Any business with less than 500 employees is eligible for the loan. You are entitled to all profits and are responsible for all your business s debts losses and liabilities. All small businesses qualify for this program.

Small businesses and sole proprietors can apply starting april 3. Fortunately it contains some help for small business owners. All states and territories are eligible.

A sole proprietorship is the simplest and most common structure chosen to start a business. It is an unincorporated business owned and run by one individual with no distinction between the business and you the owner. For example if a sole proprietor made 75 000 last year without any employees the calculation would simply be 75 000 12 multiplied by 2 5 for a total ppp loan of 15 625.

Because there is a limit to how much aid is available be sure to apply quickly. Some small business owners worry they won t qualify for the government s stimulus because they have already laid off staff. Independent contractors and self employed individuals can apply starting april 10.

Even if a sole trader doesn t employ anyone they re able to access the payment if they meet the eligibility criteria. Self employed individuals independent contractors and sole proprietors are also eligible. Additionally businesses need to.