AmyC
Expert Alumni

Get your taxes done using TurboTax

1. No. Start up costs should have been limited to allowed amounts by the computer. However, if you took sec 179 on any assets, you will need to recapture excess depreciation.

 

2. No need to file Sch C if it does not affect your income and tax. If your LLC were a corporation or partnership, you would have to file a final business return. This is not the case for a Sch C which is generally a sole proprietorship. People pick up odd jobs, start businesses, and report them as needed. Sch C is linked to your personal income and information. 

 

3. If you have nothing to recapture, no income, no employees were paid, nothing to report, then you do not need to file the Sch C as it does not affect your taxable income.

 

The instructions for Sch C state:  We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax.

 

Reference: About Schedule C (Form 1040), Profit or Loss

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