If you are the sole owner of a business or operate as an independent contractor, you will need to file a Schedule C to report income or loss from your business activities.

The IRS does provide a simplified version of Schedule C, known as Schedule C-EZ, that can be used by some sole proprietors, primarily those who work as independent contractors for one or more larger businesses.

If you have $400 or more of business income over and above your expenses, you need to file a Schedule C or C-EZ, and a Schedule SE to pay self-employment tax, even if you would not otherwise have enough income to be required to file a tax return.

Schedule C-EZ (Form 1040), Profit from Business (Sole Proprietorship)

The file is in Adobe portable document format (PDF), which requires the use of Adobe Acrobat Reader.

For background information as well as information on related topics, see our discussion of Schedule C-EZ.