What Is a Schedule C Company?

What Is a Schedule C Company? thumbnail
Certain kinds of businesses file a Schedule C form

All businesses are required to file forms based upon the type of proprietorship. One of these forms is called a Schedule C.

  1. Definition

    • EFileMagic.com describes a Schedule C as the federal tax form that is filed by sole proprietors.

    Who can use it

    • Often, businesses filing a Schedule C are self-employed business owners just getting started. Businesses that are making little or no money, or that are losing money, may be able to file the Schedule C.

    Schedule C-EZ

    • According to Tipsity.com, small businesses with expenses of $5,000 or less may be permitted to file the simpler Schedule C-EZ, rather than the longer Schedule C.

    Taxable activities

    • The Department of Revenue for Washington State explains that the Schedule C form is used for businesses that need to report taxable activities.

    Expense reporting

    • BizFilings.com explains that sole proprietors also use the Schedule C to report expenses that can be used as deductions on their tax returns.

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  • Photo Credit Image by Flickr.com, courtesy of Rick Audet

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