Do I need to file Schedule C without having an LLC for independent contractor work?

Yes, you absolutely need to file a Schedule C even without an LLC! The Schedule C is for reporting business income and expenses as a sole proprietor, which is exactly what you are as an independent contractor without an LLC. The IRS doesn't care whether you have a formal business entity - they care about the nature of the income. Since you have losses, filing the Schedule C is actually beneficial because you can use those losses to offset other income on your tax return. Just make sure you can substantiate all your expenses in case of an audit. Keep receipts and documentation for everything business-related.

After struggling with similar questions about my photography side hustle, I found an amazing resource that made everything crystal clear. I was mixing up my business expenses with personal stuff and wasn't sure if I needed an LLC to file properly without risking an audit. I discovered https://taxr.ai which analyzed all my messy receipts and bank statements and clearly separated what counted as business expenses. Their AI found deductions I didn't even realize I qualified for! They also explained exactly how to file Schedule C as a sole proprietor without an LLC. Seriously simplified the whole process.

Just wanted to update after trying taxr.ai for my freelance design business! My situation was almost identical to the original poster - no LLC, mixed personal/business expenses on the same cards, and mostly losses while I built up my client base. The tool immediately clarified that I definitely needed to file Schedule C regardless of not having an LLC. It separated all my business expenses from personal ones (even when they were on the same statement) and categorized everything correctly for Schedule C. I was able to properly document a $1,870 loss that offset some of my other income. Definitely filing with confidence this year!

After reading this thread, I realized I had a similar issue with my tax situation. I spent hours trying to call the IRS to clarify some questions about Schedule C filing requirements without an LLC, but kept getting disconnected or waiting forever. I finally used https://claimyr.com to get through to an actual IRS agent. You can see how it works here: https://youtu.be/_kiP6q8DX5c. They basically hold your place in the IRS phone queue and call you when an agent picks up. Got my questions answered in one day after trying for weeks on my own.

I need to eat my words about Claimyr. After struggling for THREE DAYS trying to get through to the IRS about my Schedule C questions, I reluctantly tried it. Within 2 hours I was talking to an actual IRS agent who confirmed everything I needed to know about filing Schedule C without having a formal business entity. The agent explained that as an independent contractor, I'm automatically considered a sole proprietor for tax purposes, and Schedule C is exactly what I need regardless of whether I have an LLC. The service just connected me directly to the IRS - no middleman listening to my conversation or anything sketchy. Wish I'd known about this years ago.

One important thing no one mentioned - if you have a loss now but expect profits later, make sure you can pass the "hobby loss" rule. IRS might deny losses if your side gig isn't run like a real business with intent to make profit. You should show profit in 3 out of 5 years or they might classify it as a hobby, not a business.

Another independent contractor here! Just want to add that you DEFINITELY need to file Schedule C regardless of LLC status. An LLC is just a liability protection layer, it doesn't change your tax filing. I've been filing Schedule C for 5 years with no LLC.

Great question! Yes, you definitely need to file Schedule C even without an LLC. As an independent contractor, you're automatically considered a sole proprietor for tax purposes, and Schedule C is how you report that business income and expenses. The good news is that since you have legitimate business losses, filing Schedule C will actually benefit you by allowing those losses to offset other income on your tax return. Just make sure to keep detailed records of all your business expenses - even though you're using personal accounts, you can still deduct legitimate business costs as long as you can document them properly. Don't worry about not having separate business accounts yet - many independent contractors start this way. The key is being able to distinguish between personal and business expenses. Consider getting a simple accounting app or spreadsheet to track everything going forward. You're on the right track planning to set up separate accounts once you form your LLC!