Schedule E's are for Rental Income (passive), while Schedule C's are for business income (non-passive).
Generally speaking, Rental Income is passive. Passive income can include rent collection, dividends, interest, in other words, income you get but don't work for to get.
Non-passive income is income like your salary or in exchange for services or commission.
For rental property to be non-passive you usually need to be a real estate professional (REPS status) and participate in the day-to-day operations of your rental business.
Bed and Breakfast properties can sometimes qualify as Schedule C because there is active work in preparing meals and other services. The main difference here is the fact that you would provide services to the renters.
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