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Form, Use this form to -. Find the definition of a sole proprietorship and the required forms for tax filing.This exemption shall take effect July 1, 2018, and shall be applicable to all taxable years beginning after December 31, 2018. ROUNDING. SECTION I – ALL ENTITIES COMPLETE -. 1. You'll complete a separate form for your sole proprietorship taxes, Schedule C, which you file with your personal income tax form, Form 1040. A sole proprietorship is easy to form and gives you complete control of your business. A sole proprietorship is an unincorporated business that has just one owner who pays personal income tax on profits earned from the business. Taxes. Filing tax forms is easy. Simply complete the IRS Schedule C. Disadvantages of a sole proprietorship. The appointee is authorized to act on my behalf for all of my tax and debt issues for all years or periods.