Definition

• EFileMagic.com describes a Schedule C as the federal tax form that is filed by sole proprietors.
  
  

Who can use it

• Often, businesses filing a Schedule C are self-employed business owners just getting started. Businesses that are making little or no money, or that are losing money, may be able to file the Schedule C.
  
  

Schedule C-EZ

• According to Tipsity.com, small businesses with expenses of $5,000 or less may be permitted to file the simpler Schedule C-EZ, rather than the longer Schedule C.
  
  

Taxable activities

• The Department of Revenue for Washington State explains that the Schedule C form is used for businesses that need to report taxable activities.
  
  

Expense reporting

• BizFilings.com explains that sole proprietors also use the Schedule C to report expenses that can be used as deductions on their tax returns.