Closing a business

[CaddyGrn]

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.

[Anonymous_ · Accepted solution]

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]

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

[PatriciaV]

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.