If you are operating as a sole prietor, you would simply note the results of your operation on a Schedule C, and attach it to your form 1040. If however you have a Subchapter S corporation or an LLC you would have to fill out the pass through tax returns for them, and the profit or loss from your business would be reported to you on a K1 form which would also become part of your 1040 form. If you have a Subchapter C corporation, you would need to complete one of the 1120 tax returns. You may want to visit Bizdoks at www.bizdoks.com for a better understanding why operating under the sole proprietor form of business may not be in your best interest.