How many businesses can be reported on each Schedule C?

The correct answer indicates that each business must have its own Schedule C when reporting income and expenses for tax purposes. The Schedule C is designed to capture the financial details of a single business entity, including revenue, deductions, and net income or loss. This separation is important for accurately assessing the tax implications of each business, as different businesses may have distinct expenses, income streams, and tax considerations.

Consolidating multiple businesses onto one Schedule C would complicate the reporting process and could lead to inaccuracies in both income reporting and potential deductions. Such inaccuracies might result in issues with the IRS or could complicate the taxpayer’s financial analysis of their separate business ventures.

While the other options suggest various allowances for combining business reporting or conditions under which reporting might change, they do not align with the IRS guidelines that require separate Schedule Cs for individual businesses. Therefore, maintaining clarity in individual business reporting is crucial in ensuring compliance with tax obligations and achieving a clear picture of each business's financial performance.