Sole-Proprietors file Schedule C-Profit/Loss from Business

Each sole proprietor must use Schedule C to report business income and expenses as part of their individual income tax return (Form 1040). The income is taxed at the individual’s ordinary income tax rate. The sole proprietor also pays self-employment tax on the Schedule C profit. The Schedule C is due as part of the sole-proprietor’s Individual Income Tax Form1040 on April 15^th.