Schedule C Example 2017-2024 Form

What do You Need to Know about Schedule C?

If you’re running a sole proprietorship business or a single-member limited liability company (LLC), you have to report your income to the Internal Revenue Service using a Form 1040 Schedule C.

Be sure to add your net income and any earnings you have received from other sources and provide the owner’s personal tax return.

This template requires basic information concerning your business such as name, address, employer’s ID and Social Security number. It’s also important to indicate if the name of the business differs from yours. Then, include information about your accounting method - whether you work with cash or an accrual accounting system.

Whether you sell products or services, the total income should be mentioned, including allowances, credits, reimbursement, or any profit from an investment.

How do You Prepare a Schedule C Form 1040?

The template is divided into five sections. Insert the required data into the fillable fields and sign the document. You can add your signature even on your smartphone. Use an e-pen or draw it with your finger on the touchscreen.

• The first section is for determining and reporting your income type: wages, salary, taxable interest, capital gains, etc.
• The second section is for including expenses such as rent, insurance, supplies, maintenance, commissions, fees, and others.
• The third section determines the cost of goods sold.
• The fourth section should be completed only if you’re claiming expenses for transportation.
• The fifth section is for listing business expenses not applicable to the above sections.

E-file the completed Schedule C to avoid any mailing delays. On the other hand, you may print out a physical copy mail it, if that's what you prefer. If you accidentally make a mistake, fill out another one and file the correct version.