Termination of my LLC

[JRS1943]

The state of Washington has administratively terminated my business for sales tax purposes and I have filed paperwork to terminate the business in Washington as we have moved to New Mexico.  I am continuing to operate the business but will do so as a sole proprietorship.  I believe I should do things differently for reporting on schedule C in 2019 but the Turbo Tax software did not address this type of change.  Where do I find information about what I should do for reporting this business in 2019?

[DianeC958 · Accepted solution]

If you were a single member LLC then you need to file a final Schedule C for the LLC.

As you go through TurboTax it asks if you stopped this business in 2019.  For the LLC you would check the box and file any final income and expenses.

Link to Closing a Business

If you have closed out the LLC to operate as a sole proprietor instead of having a Federal ID number you just use your Social Security number for the business start a new Schedule C and put the income and expenses on Schedule C for the business after the end of the LLC.

Link to Reporting Self-Employment Business Income and Deductions