A tax term that allows a current deduction for business expenses; contrasted with capital expenditures. An ordinary and necessary business expense of a sole proprietor would appear on Schedule C of Form 1040.
An unincorporated business owned by a single person, where the individual proprietor has rights to all profits and responsibilities for all liabilities. The income is reported on Schedule C of Form 1040 and is subject to self-employment tax.
Schedule C is a tax form used by individuals to report income and expenses from a business or self-employed activity.
A sole proprietorship is a business or financial venture that is carried on by a single individual and is not organized as a trust or corporation. The sole owner has unlimited liability and reports income and expenses on Schedule C of Form 1040.
