Businesses all have some things in common, but they have many interchangeable parts including the entertainment business. The Internal Revenue Service is a section of the government that most individuals and all American business must report too. All of the different types of business including: sole proprietorship, limited liability companies, partnerships, and corporations. Today I will explain a common tax for known as a Schedule C or a Profit or Loss From Business Form.
The Schedule C is broken down into five parts Income, Expenses, Cost of Goods Sold, Information on your Vehicle, and Other. Each individual part is just as important as the other. The income is calculated from 1099s, W-2s, and other tax forms. This is income that people use to keep their doors open. This form is used for Sole Proprietorships, Limited Liability Companies, and some partnerships.
Part two in my opinion is the part because this is a company gets its most tax write-offs. The expenses for some companies is more than the income, and these companies often times have different income sources from business profits, or these business tend to dissolve if this process continues.
Part Three is the cost of goods sold, and this sections as well as section two may have many other forms connected to them. Cost of goods is a track record of what you have purchase on goods for ones to gain a profit.
Part Four is the section which tracks ones vehicles and automobiles used for work purposes. This includes mileages and dates the automobile was put to use. It also has if your automobile was use for personal use, or for any other reason other than work. They would like for business to keep a hand written mileage log in case of an audit the company can have proof of their mileages.
Part Five is the other sections many times in this anything such as donations and other miscellaneous items that cost money were placed in this section. All sections are used. This form is a common form in business, and this form is very important in the entertainment business. It can make or break your company by itself, so remember Schedule C or a Profit or Loss From Business Form is very important.
http://www.irs.gov
