Yes, you would report it on Schedule C as if you were a sole proprietor
According to IRS Publication 535 a business bad debt is one that comes from operating your trade or business. You can deduct business bad debts on Schedule C (Form 1040) or your applicable business income tax return.
A business bad debt is a loss from the worthlessness of a debt that was either:
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Created or acquired in your trade or business, or
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Closely related to your trade or business when it became partly or totally worthless.
A debt is closely related to your trade or business if your primary motive for incurring the debt is business related.
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