Who needs to file a Schedule C?

You must file Schedule C (Profit or Loss From Business) if you are a sole proprietor or a single-member LLC (taxed as a disregarded entity) and you have net business income or losses during the year. This includes: - Freelancers and independent contractors who receive Form 1099-NEC - Self-employed individuals who run a trade or business - Single-member LLCs (by default, unless you elect S or C Corp treatment) - Gig economy workers (Uber, Lyft, DoorDash, Instacart, TaskRabbit) - Side business income (even if it's a small amount) You do NOT need Schedule C if: - You are a W-2 employee with only employment income - Your side income is from a partnership (use Schedule E) or S Corporation (also Schedule E) - You received a taxable hobby income — IRS distinguishes hobby income from business income (profits in 3 of 5 years establishes a profit motive) Schedule C is filed with your Form 1040. You can file multiple Schedule C forms if you have more than one unrelated business.

• Required for sole proprietors and single-member LLCs with business income/loss
• Freelancers, gig workers, and independent contractors all file Schedule C
• Multiple businesses → multiple Schedule C forms
• Hobby income vs. business income: profit motive test (3 of 5 years profitable)
• S Corp/partnership income uses Schedule E, not Schedule C