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Level 2
posted Mar 20, 2025 5:59:32 AM

Expanded the work that I do, is it a new business?

I have been a photographer (sole proprietorship) for about 6 years now. Recently, I have been doing some video and audio editing. Does the IRS see me as having two separate businesses now? Or can I update my business details with the IRS and state so that I won't need two Schedule Cs, two records of accounting (income and expenses), etc.?

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2 Best answers
Expert Alumni
Mar 20, 2025 6:17:03 AM

As long as your work is still generally in the same industry or profession, then you can still file it as a single Schedule C.  You might update your business code used with the Schedule C if there is a better fit for what you do.  

 

If you had remained a photographer and decided to start making crafts or doing bookkeeping, then you had clearly started a new, second business.  

Level 2
Mar 21, 2025 4:35:03 AM

would the same be true of state gross receipt (sales) taxes?

3 Replies
Expert Alumni
Mar 20, 2025 6:17:03 AM

As long as your work is still generally in the same industry or profession, then you can still file it as a single Schedule C.  You might update your business code used with the Schedule C if there is a better fit for what you do.  

 

If you had remained a photographer and decided to start making crafts or doing bookkeeping, then you had clearly started a new, second business.  

Level 2
Mar 21, 2025 4:35:03 AM

would the same be true of state gross receipt (sales) taxes?

Expert Alumni
Mar 21, 2025 6:12:50 AM

Probably, but you should confirm that with your state to be sure.  That question is not within the scope of something we can answer here.

 

@urbandisciplep