Enrolled Agent Exam [Part 2] 01, Sole Proprietorship Basics and Schedule C

About this episode

This episode covers the basics of sole proprietorships and the use of Schedule C for tax reporting.

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - What defines a business as a sole proprietorship for federal tax purposes. - The primary function of Schedule C in reporting business profit or loss. - How a sole proprietorship's income and expenses flow through to the owner's Form 1040. - Key differences between deductible business expenses and non-deductible personal costs or owner's draws. - The critical distinction between a for-profit business and a hobby, and the tax implications of this classification. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep

People in this episode

Host: Ran Chen

Topics covered

• sole proprietorship
• Schedule C
• tax reporting
• business expenses
• for-profit vs hobby

Keywords

• sole proprietorship
• Schedule C
• tax implications
• deductible expenses
• Form 1040

Mentioned in this episode

Organizations: Open Exam Prep, YouTube Channel

Products: EA license, Insurance and Securities licenses, CFP® designation, Schedule C, Form 1040

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