I closed my business and my business checking account in 2017. I transferred ending balance into my personal account. Do I need to pay taxes on that amount?

[Staying-fit]

Basically it's almost the same amount that I put into my business account when I opened a couple of years ago.

[IsabellaG · Accepted solution]

No, not if you are a sole proprietor filing a Schedule C. There is nothing you need to report concerning closing your business and transferring your funds into your personal account. If you sold any business assets or otherwise disposed of business property, you would need to report those transactions.

If you operated as a different entity, such as a Corporation, you would have a different situation.

See this article on Closing a Business.

[Staying-fit]

Thank you for your response. I did have it set up as an LLC. I was the sole owner/member of the LLC. I couldn't find anything in the article you suggested about that situation. I also didn't have any assets associated with my business, only inventory which I'm zeroing out at the end of 2017. Does it change anything?