To write a proof of income for a self-employed business, include the following elements:

1. Business Revenue Statement: Detail total income generated over a specific period, categorized by source (e.g., contracts, sales).

2. Expenses Documentation: List all business-related expenses (e.g., supplies, rent, utilities) with receipts or invoices.

3. Net Profit Calculation: Subtract expenses from revenue to show net income, ensuring it aligns with tax filings.

4. Tax Returns: Attach Schedule C (U.S.) or equivalent forms, along with Form 1099-NEC if applicable.

5. Business License and Registration: Provide proof of legal operation.

6. Letter of Verification: A signed statement from the business owner affirming the income details.

This documentation ensures clarity and compliance with financial verification requirements, such as loan applications or visa sponsorships. Self-employed individuals often face higher scrutiny due to variable income, necessitating thorough records. According to the IRS, 1.5% of self-employed tax filers (Schedule C) were audited in 2022, compared to 0.8% for wage earners, highlighting the importance of accurate documentation (IRS, 2023). Additionally, a 2021 National Association of Self-Employed (NASBA) survey found that 68% of lenders require net profit figures, not gross revenue, to assess creditworthiness. Gross revenue alone can be misleading, as self-employed businesses frequently operate with high expenses. For example, a study by the U.S. Small Business Administration (SBA) revealed that 40% of self-employed individuals underreport expenses, risking audits or rejected applications. Including net profit and supporting tax returns mitigates such risks. Furthermore, the SBA notes that 55% of visa sponsors (e.g., for green cards or investor visas) reject incomplete income proofs, emphasizing the need for comprehensive documentation. Properly structured proof of income strengthens credibility, reduces audit risks, and meets regulatory standards, ensuring smoother approvals for financial or legal purposes.