Closing a business

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We have maintained a business license for quite a few years, but for the last 5 or so we haven't deducted much of anything as our "earnings" have been under $200. We are essentially retired. If I don't claim any expenses can I simply put the small income from writing in miscellaneous income and delete the business section? I am not sure if I need to "officially close out our business with IRS or what. Any insight will be most welcome. Thank you in advance.

Not A Product Question

Anonymous_Answer

Level 15

See https://www.irs.gov/businesses/small-businesses-self-employed/closing-a-business

You do not have to officially close a (Schedule C - sole proprietorship) business with the IRS unless you have an EIN that needs to be canceled.

If you have around $400 or less in income from the activity, it will make no difference whether you report the income on Schedule C or as miscellaneous income.

Anonymous_Answer

Level 15

See https://www.irs.gov/businesses/small-businesses-self-employed/closing-a-business

You do not have to officially close a (Schedule C - sole proprietorship) business with the IRS unless you have an EIN that needs to be canceled.

If you have around $400 or less in income from the activity, it will make no difference whether you report the income on Schedule C or as miscellaneous income.

mlknndy

Level 2

Do I have to remove or leave the Asset forms with the filings SCH C?

PatriciaV

Alumni - Intuit

If you are closing your business, you should report that you converted all business assets to personal use - or sold if that's the case. Then next year, you can delete any forms that remain when you start your return.

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