If I want to close my sole proprietorship can I just wait till my license expires or is there paperwork involved?

[chevy2011stiles]

I haven't done anything with the business and now plans have changed and I don't plan on it. so do I just let it go? or do I have to file paperwork to officially close it? 

[Coleen3 · Accepted solution]

If it is a disregarded entity, meaning not taxed as a Corporation or Partnership, you just let it go. If you have an LLC, you will need to file paperwork with your state. A license has nothing to do with your Federal tax return. It is a local government requirement.

[chevy2011stiles]

thank you for the quick response

[Coleen3]

I'm glad it was helpful!