It appears as if @paulap70 is a partner who materially participates in the partnership's business and will receive a K-1 (1065) from the partnership.
As a result, although considered to be self-employed, @paulap70 should not report the loss on Schedule C since that form is for sole proprietors. Rather, @paulap70 should simply enter the information from the K-1 into @paulap70's individual income tax return (via the software, I presume).
