Everything You Need to Know About IRS Schedule C

What is Schedule C?

Schedule C is the IRS form used to report profit or loss from a business you operate as a sole proprietor or single-member LLC. If you earned income as a freelancer, contractor, or self-employed individual, Schedule C is how you tell the IRS what you made and what you spent — and it directly determines how much self-employment tax you owe.

Who needs to file Schedule C?

Anyone who runs a business as a sole proprietor, works as an independent contractor, or earns self-employment income — including side income from platforms like Uber, Etsy, or Upwork — generally needs to file Schedule C. If your net earnings from self-employment exceed $400 in a year, the IRS requires you to report them.

What can I deduct on Schedule C?

Schedule C allows you to deduct ordinary and necessary business expenses — things like advertising, business insurance, office supplies, software subscriptions, vehicle use, professional services, and home office costs. Reducing your net profit on Schedule C directly lowers both your income tax and your self-employment tax, so getting deductions right matters.

How do I fill out Schedule C with ZenDocs?

Open Schedule C in our editor, enter your business name and activity code, report your gross income, list your deductible expenses by category, calculate your net profit or loss, sign using our e-signature tool, and download to attach to your Form 1040. Most people complete it in under fifteen minutes.