If you are starting or own a small business then you will be responsible for filing small business taxes. The most common federal tax form filed by most one-owner businesses, is the Schedule C, the tax form filed by most sole proprietors. Schedule C filers are self-employed taxpayers including new business owners who make very little or no profit or even lose money.
Schedule C (Form 1040), Profit or Loss Statement is used to report income or loss from a business 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 and you are involved in the activity with continuity and regularity. For example, a sporadic activity or a hobby does not qualify as a business. The following IRS tutorials will help you better understand the laws.
IRS Video Tutorials
Lesson 1– What you need to know about federal taxes and your new business
Lesson 2 – What you Need to Know about Schedule C and other small business taxes and tax forms
Lesson 3 – How to file and pay your taxes electronically
Lesson 4 – What you need to know when you run your business out of your home
Lesson 5 – Home office what is deductible?