**Note on self-employment versus sole proprietorship vs LLC vs LLC with multi-partners: A self-employed individual simply means the person works for him or herself. It’s just a business term. A sole proprietor refers to someone who owns a business by themselves. A sole proprietor does not work for a company like a traditional employee. A single-member LLC is considered a sole proprietor; for tax purposes, while a multi-member LLC is considered a partnership. Both sole proprietorships and LLCs file tax returns that blend the business owner’s personal income with their business income. A multiple member LLC must file a tax return, and give the members K-1 forms to file with their returns.