Someone must materially participate. If there are more than one individual involved in the business and you are a silent partner, then it is not appropriate to file a schedule C using Home & Business. You have some other kind of business that needs a different kind of return.
If you are the sole owner of the business, but you hand off all activities to a manger and do nothing but collect the profits, you probably need legal and/or tax advice to make sure your business is structured appropriately for that situation. You are more like a S-corporation where you are the 100% shareholder but someone else literally does all the work and you are completely passive. But is that really the case? You don't talk to clients? Hire the workers who do the work? You don't make calls or do bookkeeping or supervise the manager who directs the business activities? We would need to know a lot more about the business, and you may need professional guidance.
