Business FinancesQuestion 1158 of 1605
A sole proprietor contractor reports his business profit for federal income tax on:
a.The CSLB license application
b.A corporate Form 1120 only
c.Schedule C of his personal Form 1040
d.Form W-2 issued to himself
Explanation
A sole proprietor reports business income and expenses on Schedule C, which flows to the owner's personal Form 1040. The net profit is subject to personal income tax and self-employment tax; there is no separate corporate return for a sole proprietorship.
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)