A sole proprietorship files Schedule C of Form 1040, a partnership files Form 1065, a C corporation files Form 1120, and an S corporation files Form 1120S.

Question

Quizplus · Accepted Answer

Each business entity type files its income taxes differently: a sole proprietorship uses Schedule C of Form 1040 to report business income and expenses; a partnership files an annual information return on Form 1065; a C corporation files its taxes using Form 1120 to report its income, gains, losses, deductions, and credits; and an S corporation files Form 1120S to report its income, losses, and dividends.

A Sole Proprietorship Files Schedule C of Form 1040, a Partnership