What is a specified service trade or business (SSTB)?
A Specified Service Trade or Business according to Internal Revenue Service is “any trade or business. where the principal asset is the reputation or skill of one or more of its workers or owners”. Let’s try to grab the concept in a simpler way. The businesses or trades that involve the privilege or reliability of the business owners . Or its employees are termed as SSTB. These services also involve investing and investment management, dealing in securities, dealing in partnership interests and Commodities. These fields or Services that are considered as SSTB are: Accounting Health Law Financial Services Consulting Performing Arts Brokerage Services Athletics Actuarial Sciences And any other trade or business whose primary asset is the reputation or skill of the worker. In short, if a person runs a personal business that relies on his abilities and services. Then he is personally responsible if anything goes wrong. This includes negative fe...