For example, a sporadic activity or a hobby does not qualify as a business.

To report income from a nonbusiness activity, see the instructions
for Form 1040, line 21, or Form 1040NR, line 21.

Also, use Schedule C to report (a) wages and expenses you had as a statutory employee, and (b) certain income shown on Form 1099-MISC, Miscellaneous Income.

See the Instructions for Recipients (back of Copy B of Form 1099-MISC) for the types of income to report on Schedule C.

Small businesses and statutory employees with expenses of $5,000 or less may be able to file Schedule C-EZ instead of Schedule C. See Schedule C-EZ for details.

You may be subject to state and local taxes and other requirements such as business licenses and fees.
Check with your state and local governments for more information.

Download printabable pdf file of the IRS 2010 Schedule C Form

Download printable Instructions for the 2010 Schedule C

Download printable 2010 Schedule C EZ

As always check the facts as with all government info may be subject to change. For more information go here www.IRS.Gov