According to this article posted in Turbo Tax, a balance sheet may be avoided if:
- Total business income (before deductions) is less than $250,000, and
- Your business isn't filing an Alabama, Connecticut (non-partnership), District of Columbia, Georgia, Kentucky, Louisiana, Massachusetts, Mississippi, New Jersey (non-partnership), New York, North Carolina, Oklahoma, Pennsylvania, South Carolina, or Tennessee return, and
- Corporation/S corporation year-end assets are less than $250,000 or partnership/LLC year-end assets are less than $1,000,000.
In your case, is your business located in the states that are mentioned?