Does an indivual/Sole Properiteship only have to pay taxes on the profit made from a business?

Question

or the net income not counting the expenses?

Answer 1

Net income and profit are the same thing.  Net income is ALWAYS after allowable expenses.  You pay income taxes on the net profit (or net income) from the business activity.

Answer 2

First response is correct.  If the business is operated as a proprietorship rather than as a separate corporation, revenue and expense details go on Schedule C.  Profit or loss then gets copied to Form 1040.