Congratulations on the new business! It depends on how you have structured your business. Adding a business to your income portfolio can mean you will need to include your business information on a Schedule C on your Form 1040 if it is owned by taxpayer or taxpayer and spouse. If it is a partnership, multi-member LLC, or S-Corp, then you will file a business return and generate a K-1 that will be used to report on your personal income tax return.
If you report on a Schedule C, as part of your individual tax return, the Schedule C acts a bit like an Income Statement, or P&L, in that it will include all your income and eligible expenses to arrive at a "net income" or profit for the business that will be self-employed taxable income. If it is a partnership, S-Corp or multi-member LLC, then you will be taxed on your portion that is reported on the K-1.
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