What income should an Unincorporated (sole proprietor) business report?

The income that should be reported depends on whether both the owner and the business are resident or non-resident. An owner is a resident when his or her primary residence is within the city limits. A resident business is a business entity having an office, operation, or business site within the City. Important information is as follows:

  • If the owner is a resident and the business is a resident then all income is subject to tax, regardless of where the work was performed.
  • If the owner is a resident and the business is a non-resident, all income is subject to tax, regardless of where the work was performed. However, if taxes are paid to a city (other than Trenton) in which the business resides, then Trenton will grant the business credit up to the amount paid to the other municipality (but not in excess of the 1.5% Trenton tax).
  • If the owner is a non-resident and the business is a resident, then credit up to 1.5% will be allowed for city taxes paid to other municipalities.
  • If the owner and the business are both non-residents, then only income earned on work performed in the City is taxable.

Show All Answers

1. Does a business have to file a return?
2. How should S-Corporations and Partnerships report their profits?
3. What income should an Incorporated business report?
4. What income should an Unincorporated (sole proprietor) business report?
5. How is Taxable income determined for businesses?
6. How are net operating losses treated?
7. Can I combine reporting for more than one unincorporated Trenton business on a single tax return?