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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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AnnetteB6
Employee Tax Expert

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

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.  

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

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

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3 Replies
AnnetteB6
Employee Tax Expert

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

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.  

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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

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

AnnetteB6
Employee Tax Expert

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

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 

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