If you close your business then - unless you sell off your equipment or any of the other assets of the company - you simply stop reporting it. If you have not made any money in three years you probably should admit that this is just a hobby and not an income generating activity.
If you decide to close the business but keep doing the activity because you enjoy it then it is a hobby. Hobby income is different than business income because you can't deduct hobby expenses so you pay taxes on the full amount that you earn. But, on the upside, you do not pay self-employment taxes on any of the hobby income.
If you decide to wash your hands of the whole business and sell off all your equipment that you expensed during that first year then any money from selling off the equipment is business income for that year.
@nascar6fan1
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