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New Member
posted Jun 4, 2019 2:15:30 PM

Do I have to have a balance sheet and general ledger if I am sole proprietor?

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1 Best answer
New Member
Jun 4, 2019 2:15:31 PM

A sole proprietor or single-member LLC, reporting business income and expenses on Schedule C (Form 1040) does not have to report a balance sheet as part of the tax return.

However, I hope you are keeping a good set of books for your business, for your own information and to provide information for sound management decisions. I would highly recommend Intuit's QuickBooks. It is easy to learn, does not take much of your time, and will provide you with tools for decision-making and growth of your business.

1 Replies
New Member
Jun 4, 2019 2:15:31 PM

A sole proprietor or single-member LLC, reporting business income and expenses on Schedule C (Form 1040) does not have to report a balance sheet as part of the tax return.

However, I hope you are keeping a good set of books for your business, for your own information and to provide information for sound management decisions. I would highly recommend Intuit's QuickBooks. It is easy to learn, does not take much of your time, and will provide you with tools for decision-making and growth of your business.