Yes, it is because you have a 1099-MISC. When you have a 1099-MISC for contractor/ freelance/ non-employee work, a federal Schedule C is on your return. California has a Schedule C as well, and so you'd have one there too.
An individual with a 1099-MISC or an individual with a single member LLC may both have Schedule Cs. The term "business" is very broad, and covers a variety of situations. For tax purposes, you can have a business and file a Schedule C with even a small amount of income on Form 1099-MISC.
