Thank you for your clarification request,
Clarification: I realized after posting that I may have mixed up the information: I'm a single member/owner LLC in Michigan. I filed an entity classification election form 8832 in February 2003 (Form Rev September 2002) I selected option C. A domestic entity with a single owner electing to be disregarded as a separate entity and have paid business income taxes via a schedule C on my personal tax return. The business does have a separate EIN for the purpose of paying Michigan business transaction Sales Taxes, which are filed separately. In reading about dissolution, I read federal step one as paying your final taxes using forms 996 and 1120-S + schedule K-1 and checking final return, which I suspect is not correct for me as a disregarded LLC since I never filed business taxes on these forms in the past and only filed via Schedule C on my personal taxes.
Question: Would the following be accurate steps and in the correct order? 1. State of Michigan Certificate of Dissolution and receive confirmation of processing, 2. File final 2023 Michigan business sales tax, which will be $0, 3. File personal 2023 taxes along with a final schedule C business income/loss form. 4. Cancel EIN and close business by sending a letter to the IRS: I'm reading mixed IRS instructions on this step: ...does the business need to be closed with the IRS if it's not filing corporate tax returns and not regarded as a separate entity from the owner? ...also reading that you can't cancel an EIN so these instructions are confusing.
Thank you,
