Assuming you’re the only owner of your business and you didn’t incorporate as a C or S corporation, report your income and expenses on Schedule C as part of your individual tax return.
A few things to keep in mind:
- Your expenses should directly offset your income.
- You can show a loss, but generally must show a profit for three out of five years.
- If you make $400 or more in net profit, you’ll be paying self-employment tax.
