If you had no sales or income from your business, then Schedule C, line 1 would be blank. Below is some information about the guidelines the IRS uses to determine what type of activity you have.
The Internal Revenue Service (IRS) reminds taxpayers to follow appropriate guidelines when determining whether an activity is a business or a hobby, an activity not engaged in for profit. ... Generally, an activity qualifies as a business if it is carried on with the reasonable expectation of earning a profit.
The IRS presumes that an activity is carried on for profit if it makes a profit during at least three of the last five tax years, including the current year — at least two of the last seven years for activities that consist primarily of breeding, showing, training or racing horses. It's customary for the business to take time to reach a profit in the first couple of years.
