Who Needs to File an IRS Schedule C?

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An IRS Schedule C form is a tax document provided by the IRS for business to report their profit and loss. However, and IRS Schedule C is not for any type of business. If you’re self-employed or a sole proprietor, you want to read this article to learn if you need to file a Schedule C.

This is what an IRS Schedule C looks like. Read on to learn if you need to file one.

What is a Schedule C?

An IRS Schedule C form is also known as a 1040 Schedule C. A Schedule C is required for certain businesses to report their income and losses. On this form, businesses report their income, expenses, profits, and losses for their business for each year.

What type of businesses file a Schedule C?

You need to file a Schedule C if you are:

  • self employed,
  • or a single member LLC

This includes members (i.e. owners) of limited liability corporations (LLC). These members are usually taxed as sole proprietors if they are single-member LLCs or partners in a partnership. Partners in a partnership is also known as a multiple-member LLCs.

If you’re self employed, and need an efficient way to automatically track your expenses and mileage expenses we recommend checking our Falcon Expenses on the app store. Falcon Expenses is free to download.

How do I know if I’m Self Employed?

You’re self-employed if you work for yourself, as a freelancer, sole proprietor, or independent contractor. Therefore, you likely need to file a Schedule C for work you completed in these roles. There are many terms and words used to describe someone who’s self-employed.
The IRS considers someone self-employed if they meet one of these conditions:

  • The person carries on a trade or business as a sole proprietor or independent contractor,
  • They are a member of a partnership that carries on a trade or business, or
  • They are someone who is in business for themselves, including part-time business.

Do I need to file more than one Schedule C?

If you own and operate more than one business then you need to file an IRS Schedule C form for each of these businesses.

How do you file a Schedule C?

Check out this article for detailed instructions about how to file a Schedule C, How to File a Schedule C (with Detailed Instructions). You will also find download links to the IRS Schedule C form among other resources in this article.

About Falcon Expenses

Falcon Expenses is a top-rated mobile application for self-employed and small businesses to track expenses and tax deductions. Falcon customers record $6,600, on average, in annual tax deductions. Get started today. The longer you wait the more tax deductions you miss out on.

Automatically track mileage expenses and expenses, keep an odometer log, receipt vault and log billable hours. Quickly organize expenses by time period, project or client and easily prepare reports for email to anyone in PDF or spreadsheet formats, all from your phone. Use for keeping track of tax deductions, reimbursements, taxes, record keeping, and more. Falcon Expenses is great for self-employed, delivery drivers, freelancers, realtors, business travelers, truckers, and more.

Check out the following articles for more information about Falcon Expenses features and services:

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Brooke Sugarman

I used to travel a lot for work. Doing my expenses frustrated me. I would delay submitting them and when I did, I would spend hours taping receipts to paper to scan for my boss. I knew there was a better solution, and I had a background in productivity software, so I created Falcon Expenses. I enjoy creating software that makes people's lives easier. In addition, I'm an avid skier and I enjoy hiking, sailing, and cooking.

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