topic Closing a business in Business & farm

Closing a business

CaddyGrn — Mon, 23 Feb 2026 11:00:47 GMT

We have maintained a business license for quite a few years, but for the last 5 or so we haven't deducted much of anything as our "earnings" have been under $200. We are essentially retired. If I don't claim any expenses can I simply put the small income from writing in miscellaneous income and delete the business section? I am not sure if I need to "officially close out our business with IRS or what. Any insight will be most welcome. Thank you in advance.

Re: Closing a business

Anonymous_ — Sun, 08 Jan 2023 21:27:00 GMT

See https://www.irs.gov/businesses/small-businesses-self-employed/closing-a-business

You do not have to officially close a (Schedule C - sole proprietorship) business with the IRS unless you have an EIN that needs to be canceled.

If you have around $400 or less in income from the activity, it will make no difference whether you report the income on Schedule C or as miscellaneous income.

Re: Closing a business

mlknndy — Tue, 03 Feb 2026 20:43:30 GMT

Do I have to remove or leave the Asset forms with the filings SCH C?

Re: Closing a business

PatriciaV — Tue, 03 Feb 2026 21:16:23 GMT

If you are closing your business, you should report that you converted all business assets to personal use - or sold if that's the case. Then next year, you can delete any forms that remain when you start your return.