Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 3
posted Feb 15, 2021 2:35:42 PM

Where on Schedule C do I indicate I dissolved my LLC in 2020.

I dissolved my CA LLC in December of 2020 and file using schedule C as my wife and I are the whole owners of the LLC. What on schedule C do I check to let the IRS know (on our 2020 tax return) we dissolved the LLC and no longer do business effective Dec 2020?

0 5 973
1 Best answer
Expert Alumni
Feb 15, 2021 4:24:30 PM

Select the Business Tab, and then click the Business Income and Expense tab underneath. 

 

Select, I'll choose what I'll work on.

 

Select Update under Business Income and Expenses:

 

 

 

Select Edit next to your business:

 

You will be able to select that you Disposed of Business on the next screen:

 

On the following screens you will be able to provide information on how you disposed of your business.

 

5 Replies
Expert Alumni
Feb 15, 2021 3:00:11 PM

The  General Info (or Business Profile) section of the Self-Employment  interview gives you the option of reporting you have stopped operating ("Stopped work in 2020") your business. 

 

See the attached screenshots to see what these questions look like in TurboTax Self-Employed:

 

 

 

 

Level 3
Feb 15, 2021 3:51:13 PM

Sorry to be a little green here but how do I get to this self employment screen? I cannot find it in the step by step and since my business info was carried over from my 2019 tax return I did not see this interview option.  Can you give me a step by step on how to get there?

 

Level 3
Feb 15, 2021 3:54:50 PM

BTW I am using Turbo Tax Home and Business.

Expert Alumni
Feb 15, 2021 4:24:30 PM

Select the Business Tab, and then click the Business Income and Expense tab underneath. 

 

Select, I'll choose what I'll work on.

 

Select Update under Business Income and Expenses:

 

 

 

Select Edit next to your business:

 

You will be able to select that you Disposed of Business on the next screen:

 

On the following screens you will be able to provide information on how you disposed of your business.

 

Level 3
Feb 15, 2021 4:36:08 PM

Thank you very much for walking me through this step by step. This was a perfect response. Thank you again.