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Was it a partnership or a single member LLC? If it was a single member LLC, then you would not likely need to file in the other state, however, these rules can vary depending on which state you live in.
You would report the final year of income and expenses (even if it was at a loss) on your Schedule C. If you have a loss, you can generally use it to offset your ordinary income.
If it was a partnership, then you should have received a k-1 from the partnership to report the income/loss on your return. In this case, the partnership may have reporting/closing requirements to file with the state, but that varies by state.
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