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If there is a connection between any income you receive and your business, the income is business income. A connection exists if it is clear that the payment of income would not have been made if you did not have the business.
You can have business income even if you are not involved in the activity on a regular, full-time basis. Income from work you do on the side in addition to your regular job can be business income.
If you are a sole proprietor, you will report your business income on Schedule C or Schedule C-EZ. If your business is a partnership, you will report your business income on Form 1065. If your business is a corporation, you will report your business income on Form 1120 or 1120A (Form 1120S if it is an S corporation).
The Business Income section of Publication
334 explains what is business income and what is
not.