Financial Design Co

The Cliff Notes version ↓

Schedule C is used for sole proprietors and single-member LLCs (treated as a disregarded entity) to report income from their trade or business.

So, if you're the only owner of your LLC, and you haven't elected to be taxed any other way, there's a good chance you're going to have this schedule on your personal tax return.

But, let's add a few more pieces to your tax return puzzle:
-Income from rental properties usually goes on Schedule E.
-Income from farming goes on Schedule F.
-Income from a hobby (gotta be very aware of the IRS rules on this one) goes on Schedule 1 (and related expenses aren't deductible).

Just because you got a 1099 doesn't automatically mean you're going to have a Schedule C; you need to understand the nature of that income to figure out the right way to report it.

Confused? Let me take over your taxes so you don't have to worry about which income goes where!

Even if you aren't planning to sell until 20 years from now, you need to save this post.

There's ONE thing every successful business sale has in common: they had their finances clean + ready to go before the buyer had to ask.

Most buyers (or their accountants) are going to want to see things like your:

→ Last several years of tax returns
→ YTD bookkeeping + prior year financials
→ Revenue breakdowns by product/service line (and potentially by client)
→ Documentation of major assets, real estate, loans, etc.
→ Client/vendor contracts
→ Payroll or contractor records
→ Sales tax filings (if applicable)

I've seen situations where businesses have strong revenue... but because they struggled to show it, buyers hesitated or offered lower than expected.

You don't need to be selling this year, but you do need to start preparing if you plan to sell someday!

Consider this unofficial permission from a bookkeeper to buy that course you've been looking at *if* it helps you maintain or improve skills for your business!

Coaching programs, industry conferences, continuing education, and professional development courses could be deductible.

Here's where I see businesses get caught up: the education has to be for your *existing* business.

If you're getting an education or learning skills for a NEW business, that's not a write-off for your current business.