Schedule C is used to report income or loss from a business you operated as a sole proprietor (any business that is not incorporated or operated as a partnership). Schedule C is also used to report wages and expenses related to being a statutory employee. An activity qualifies as a business if your primary purpose for engaging in the activity is for income or profit and you are involved in the activity with continuity and regularity. A one owner business operating as an LLC would also report income or loss on Schedule C. If two or more owners operate an LLC, a partnership tax return would be filed.