Closing a business

Forum|Forum|3 years ago
January 8, 2023
1 reply
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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

Best answer by Anonymous_

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

Level 15

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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