Your business is reported on your own return.
A sole proprietor reports business income and expenses on Schedule C with Form 1040. A single-member LLC follows the same path by default: IRS Publication 3402 explains that its income and deductions are reported on the owner's return unless the LLC elects to be taxed as a corporation.
That means one deadline for the business and the household, April 15, and one set of records that has to support both.
Self-employment tax is the part people miss.
Net earnings of $400 or more from self-employment bring self-employment tax: 15.3%, made up of 12.4% for Social Security and 2.9% for Medicare. You can deduct the employer-equivalent half when figuring adjusted gross income, but the tax itself is owed on top of income tax.
It is often the reason a first year of self-employment ends with a larger bill than expected.
Estimated payments keep you ahead of April.
Without withholding, tax is paid through quarterly estimates. The last payment for 2026 income is due January 15, 2027, and our list of 2026 return deadlines shows the rest of the calendar. If the amount is a guess, a tax advisory conversation during the year can replace it with a number.
Paying contractors? The 1099-NEC threshold is now $2,000.
For payments made in 2026, a 1099-NEC is required when you pay a contractor $2,000 or more for the year, a higher threshold than in past years, according to the IRS 1099-NEC instructions. The 2026 forms go to the IRS and to each contractor by February 1, 2027, because January 31 falls on a Sunday.
Bring the records Schedule C depends on.
- Last year's federal and North Carolina returns, and any IRS or state notices since.
- Income records: 1099-NEC and 1099-K forms, plus your own sales or deposit records.
- Expense records by category, with receipts for larger purchases.
- Mileage logs if you use a vehicle for the business.
- Home office measurements if you work from a dedicated space at home.
- Estimated tax payments made for the year, with dates and amounts.
The self-employed records checklist goes into more detail on each item.
COMMON QUESTIONS
Questions you may have.
Does a single-member LLC file its own business return?
Not by default. A single-member LLC owned by an individual reports on Schedule C with the owner's Form 1040 unless it elects to be taxed as a corporation.
When do I owe self-employment tax?
When net earnings from self-employment are $400 or more for the year. The rate is 15.3%, covering Social Security and Medicare.
Do I need to send 1099-NECs to contractors for 2026?
Yes, to each contractor you paid $2,000 or more during 2026. The forms are due to the IRS and the contractor by February 1, 2027.