ColeenD3
Expert Alumni

Business & farm

It is not necessary to have an LLC to be a Sole Proprietor. If you prefer to have one, you still have the choice of being taxed as an SP or as a Corporation. If you choose to be taxed as an SP, then it doesn't matter. Your would file Schedule C as you normally do.

 

Yes, you would deduct that as a material and contract labor expense. You would need to issue a 1099-Misc to anyone whom you paid more than $600.

 

You will encounter this question in the interview for your business.

 

To get to the 1099-Misc:

While in your return, type “1099-misc” in the Search box and then select the “Jump to” link. This will take you directly to the section where you can enter your 1099-MISC. You will encounter these screens.

  • Did you get a 1099-MISC?  Yes
  • Fill in the "Let's get the info from your 1099-MISC" screen
    • If necessary, check the box "My form has other info in boxes 1-18.
    • You would just report your income on Schedule C as if you had any other profession.