Carl
Level 15

Business & farm

Based on the information provided, it sounds to me like you had two distinctly separate businesses in 2020. You closed one permanently and forever, and would therefore be filing a final SCH C for that business. Any and all assets in that business would be shown as being removed from the business for personal use.

Then, you opened a completely new business in another state, also in 2020. More than likely this new business will require a new EIN (unless you're using your SSN instead, which is not an option if you have W-2 employees in your business.)

That means you would be filing two SCH C's for 2020. A final SCH C for the closed business, and a new SCH C for the new business.

Then if both states tax personal income, (I don't know if they do or not) then you'd be filing a part year resident tax return for the old state, and a part year resident tax return for the new state. If this is necessary, safe the state tax return for your new resident state for last.