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Level 2
posted Apr 13, 2025 1:26:57 AM

Having 2 similarly named business on 1040?

I’ve been selling online as a self-employed business on 1040, and I describe the business as “online sales” to IRS.
If I also started selling on eBay, can I add another business named “eBay sales” with a completely new Sch C? I suppose combining them into one business would be simpler, but the types of items I sell are different and they also have different accounting method (cash method vs accrual), so I would like to report them as a different business if possible. My question is, would having two similar self-employed business cause IRS a deeper scrutiny and possibly raise your chances of being audited?

Thank you.

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1 Replies
Level 15
Apr 13, 2025 8:19:32 AM

It’s not uncommon for a tax payer to have more than one business.