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Use Schedule C (Form 1040) to report income or loss from a business you operated or a profession you practiced as a sole proprietor. An activity qualifies as a business if: Your primary purpose for engaging in the activity is for income or profit.
A single member LLC is disregarded for federal tax purposes and is treated as a sole proprietorship whose owner must file a Schedule C with their Form 1040. If there is more than one member, then, by default, the LLC is treated as a partnership.
There is no minimum income threshold for filing IRS Schedule C. You must report all business income and expenses on your Schedule C, no matter how much or how little you make. The minimum threshold for paying self-employment tax is $400.
Self-employed individuals, sole proprietors of a business, or a single-member limited liability company (LLC) must report any activity conducted for income or profit using Schedule C.
You must report all income and losses from your sole proprietorship or single-member LLC by filing Schedule C. There is a minimum threshold for paying tax on your self-employment income ($400)but no minimum for reporting any loss or profit on your business.
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If you determine you have hobby income, you will report the income on Line 8 (Other income) on Schedule 1 of Form 1040. You will report your income and expenses on Schedule C of Form 1040 if you have business income and are a sole proprietor (i.e., the only owner of an unincorporated business).
Tip. Before you try to tackle Schedule C on your own, consider using an online business tax software program. They will walk you through a set of questions to make sure you dont miss anything important. These programs will also include Schedule C on your personal tax return.
Single-Member LLCs and Sole Proprietorships If there is no income to report, it is unnecessary to file Schedule C, unless there are credits or deductions to claim.

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