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@CL44 wrote:

Also would it be better for him to be incorporated (s corp). 

he has a loan of $114,000 he made to some one else. A/R. where do I reflect that in sch c?

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Maybe, maybe not.  That requires looking at the ENTIRE situation and analyzing it closely.  That is definitely not something can be analyzed via a forum like this.  An S-corporation has the possibility of saving some tax.  However, *IF* there are tax savings, the you and the client would need to weigh out if that savings would offset the extra costs and recordkeeping (being on payroll along with all associated forms and fees, a separate tax return, etc., etc.).

Loans are not reflected on Schedule C.