Schedule C (1040)
What does it mean
Schedule C refers to a particular section of a personal tax return where income derived from certain types of businesses are listed. Some business types require a business to have it’s own tax return, and some businesses do not. Typically the primary reason a business would need to have its own tax return would be when multiple owners are involved, and the income needs to be shared proportionally to each owner. In some situations where the business is owned 100% by one individual or the business is organized as n that income is ultimately reported to the IRS through the Schedule C of the personal tax return.
Why does it matter
Understanding a Schedule C is important to a banker because it will help you to identify all of the individual’s sources of income, and you will be readily able to locate how that income is reported on their tax returns. The two most common circumstances when a Schedule C is used is when the business is a sole proprietorship or a Single Member LLC (fancy way of saying a LLC that is owned 100% by one person).
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Greetings! I'm Clay Sharkey, and there is nothing I like more than assisting others in achieving their goals. I firmly believe that by enhancing a banker's understanding of their customer's' business, they can provide superior service. This superior service, in turn, leads to stronger relationships for the bank, improved performance for the businesses, and better experiences for our communities. Win-win-win.
