If you run a one-person LLC, the short answer is: your LLC files on Schedule C. By default the IRS treats a single-member LLC owned by an individual as a "disregarded entity," so your business income and expenses land on Schedule C of your personal Form 1040 — exactly like a sole proprietor. (Educational, not tax advice — confirm specifics with a CPA or the IRS.)
| Schedule C Part II expense line |
|---|
Advertising |
Car and truck expenses |
Contract labor |
Depreciation |
Insurance (other than health) |
Interest |
Legal and professional services |
Office expense |
Rent or lease |
Repairs and maintenance |
Supplies |
Taxes and licenses |
Travel |
Meals (subject to limits) |
Utilities |
Other expenses |
Yes, by default. A single-member LLC owned by an individual is a disregarded entity for federal income tax, so you report the business’s income and expenses on Schedule C of your personal Form 1040 — the same form a sole proprietor uses. This stays true unless you elect to have the LLC taxed as an S corporation or C corporation.
Schedule C (Profit or Loss From Business) is the IRS form where a sole proprietor or single-member LLC reports business income and deducts business expenses. The result — your net profit or loss — flows to your Form 1040 and is also used to calculate self-employment tax on Schedule SE.
Generally yes. Net profit from Schedule C is subject to self-employment tax (Social Security and Medicare), calculated on Schedule SE, in addition to income tax. You pay it on the business’s profit regardless of how much money you withdraw from the business.
If the LLC elects corporate taxation (S corp via Form 2553 or C corp via Form 8832) it files a corporate return instead, and the owner takes a W-2 salary. Certain activities also use other schedules even for a disregarded LLC: rental real estate goes on Schedule E and farming on Schedule F. And if the single member is itself a corporation or partnership, the activity is reported on that entity’s return.
Clean records of business income, expenses categorized to the Schedule C expense lines, and owner draws kept separate (draws are equity, not deductible expenses). A dedicated business bank account makes this far easier and helps preserve your LLC’s liability separation.
No. A 1099-NEC is an information return a client sends you reporting what they paid you. Schedule C is where you report all your business income (1099 or not) and subtract expenses to arrive at taxable profit. You use the 1099s you receive as inputs when filling out Schedule C.