In the current year, Johnice started a profitable bookkeeping business as a sole proprietor. Johnice made $38,000 in her first year of operation. What two forms must Johnice file for her business?
A)Schedules A and C
B)Schedules D and E
C)Schedule SE and C
D)Schedules B and C
E)None of these

Question

Quizplus · Accepted Answer

Johnice, as a sole proprietor, must file Schedule C to report her business income and expenses. Additionally, she must file Schedule SE to calculate and pay self-employment taxes on her net profit from the business. Therefore, the correct answer is C - Schedule SE and C.

In the Current Year, Johnice Started a Profitable Bookkeeping Business