Business lapse

[JohnBass]

Due to personal circumstances, I did not do any work in my furniture repair business for 2019.  I do, however, intend to continue the business and am working in 2020.  How do I handle that in my taxes?  I don't want to dissolve the business. 

[Rick19744 · Accepted solution]

I assume that you are a single member LLC or sole proprietor; which is essentially the same from an income tax standpoint.

You just won't have anything to report on your Sch C.

Not a problem.

Depending on the state, just make sure you comply with any filings that may be required by the Secretary of State.  

[Carl]

Technically speaking, your business was still "open" in 2019. So go ahead and file the SCH C showing zero income, and also showing any expenses that may have been incurred. This will keep things "on track" for you with the IRS. Especially if any of the following are true;

1) Your business has depreciable assets.

2) You claim a home office

3) You claim any business vehicle use, even if that use is less than 100% business use.

[JohnBass]

Thanks for the help.