How do I determine my net business profit for the year?

If you are a sole proprietor, then you will file a Schedule C with your personal tax return. You will not file a separate tax return. Your net profit is reported on line 31 of your Schedule C.

If you are an S-Corp or C-Corp, your net profit is determined after deducting your W2 compensation. For example, if your S-Corp has a profit of $300,000 before you pay yourself a wage of $100,000, then your business profit would be $200,000.