Yes, you still need to report this as a business on your personal tax return with a SCH C. The fact that you actually operated at a loss really doesn't matter. What happens is that, since your expenses for 2015 exceed your profit, you will only be "allowed" to deduct your expenses to reduce your taxable business income to zero. After that, whatever expenses are left over will be carried over to next year. Then next year you can deduct those prior year expenses, provided you have the profit to deduct them from.
But if you don't "claim" those expenses on your 2015 return, then you can not carry them over to your 2016 return next year.
