As far as the IRS and your state is concerned, you do have a business and are self-employed. The only difference between an independent contractor and a sole proprietorship is the spelling. Literally! So yes, you are self employed and you do have a business as far as the IRS is concerned. All income reported to you in box 7 of that 1099-MISC is self-employment income and will be reported as such on SCH C as a part of your personal 1040 tax return.
