Thursday, August 11, 2011
Schedule C Basics for Creative Entrepreneurs and Etsy Shop Owners
What is Schedule C and do you have to file one? If you sell crafts on Etsy or other online venues you probably have tax questions. The most popular questions that crafts business people have pertain to Schedule C. Here are some basics. Schedule C is the form that you fill out to report "Profit or Loss from Business Sole Proprietorship." Schedule C is filed together with Form 1040 when you filed your federal U.S. income tax return. Generally, a small business owner who has chosen to be organized and taxed as a "sole proprietor" or a "Limited Liability Company" files Schedule C. A small business owner must file Form 1040 if the net profit from their business and self employment income for the calendar year (January through December) was more than $400. If you are required to file Form 1040, then the net profits from the business and self employment income are reported on Schedule C. In order to fill out Schedule C you need to know what your business income and expenses were for the calendar year. For more information, free downloads including a simple bookkeeping worksheet to use to fill out Schedule C, and for ebook guides and resources for Etsy business owners and creative entrepreneurs visit my website at www.MyCreativeCPA.com.