Profit or Loss from Business - Sole Proprietorship. This form is used for taxpayers who are independent contractors or sole owners of a business to report income or loss from their business activities. If they have earned $400 or more of business income over and above their expenses, then they will need to file a Schedule C or C-EZ Form, as well as a Schedule SE in order to pay self-employment tax, even if they would not otherwise have had enough income to file a tax return.