Checklist

Schedule C Sole Proprietor Checklist

Everything a sole proprietor, single-member LLC, or independent contractor should gather for Schedule C — income, cost of goods sold, operating expenses, vehicle, home office, and assets.

All resources

If you run a business as a sole proprietor, single-member LLC, or independent contractor, your profit is reported on Schedule C. This checklist walks you through the income and expense records to gather so your return captures every legitimate deduction — and so nothing is missed that could trigger an IRS notice. Bring what applies to your business; not every category fits every sole proprietor.

Income records

☐1099-NEC from each client that paid you $600 or more
☐1099-K from payment platforms (Stripe, PayPal, Square, Etsy, etc.)
☐A year-end total of all cash, check, or Venmo income not reported on a 1099
☐Records of any other business income: refunds applied, rebates, interest on business accounts

Cost of goods sold (if you sell products)

☐Beginning and ending inventory counts for the year
☐Purchases of inventory and raw materials
☐Freight, shipping, and delivery costs for goods
☐Cost of supplies used in manufacturing or assembly

Operating expenses

☐Advertising and marketing (website, ads, business cards)
☐Contract labor — anyone you paid $600+ who is not an employee (1099-NEC issued)
☐Business insurance (liability, professional, cyber)
☐Legal and professional fees (accounting, bookkeeping, attorney)
☐Office supplies and software subscriptions used for the business
☐Phone and internet — the business-use percentage
☐Rent for office, studio, shop, or storage space
☐Repairs and maintenance on business equipment and property
☐Business licenses, permits, and dues
☐Continuing education, training, and professional publications
☐Bank fees and payment-processing fees on your business account

Vehicle & travel

☐A mileage log showing date, miles, and business purpose for each trip
☐OR actual vehicle expenses: gas, insurance, repairs, registration (business-use %)
☐Parking and tolls paid for business travel
☐Overnight travel: lodging, airfare, and 50% of meals while away on business

Home office (if you work from home)

☐Square footage of the office space used regularly and exclusively for business
☐Total square footage of the home
☐Rent or mortgage interest, property tax, and insurance for the home
☐Utilities: electric, gas, water, internet (business-use %)
☐Repairs and maintenance to the home or the office space

Assets, equipment & estimated taxes

☐Receipts and dates for equipment, furniture, or machinery purchased over $2,500
☐Records of any business assets sold during the year
☐Dates and amounts of each quarterly estimated tax payment (federal and state)
☐Prior-year Schedule C and Form 4562 (depreciation schedule)

This checklist is provided for general guidance by Neese Financial LLC, an Enrolled Agent firm. It is not tax advice for your specific situation. Schedule a virtual appointment for help tailored to your business.