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Level 1
posted Jan 26, 2022 10:04:23 AM

What do I need to do about a small business that I created but never earned any income with?

I spent this past year looking for a new job.  As a part of that effort, I took the exams in Texas to sell general lines property and casualty insurance.  I passed the exams, created a business (Mountain and Valley Insurance), asked the IRS to establish and EIN for it, and created a separate bank account (with a different bank) for it to keep any money segregated from my private account.  After doing a little more research, I decided not to sell insurance and never earned any income from the business.  I closed down the business in Texas, asked the IRS to close out the EIN number they had issued for more business a couple of months earlier, and returned my insurance license to the state of Texas.

 

What tax liabilities do I have for the business?  What forms do I need to file?  What do I need to do?  I am currently living in the state of Washington where I found a job.

 

Please help!

 

Thank you!

Michael DeLor

 

0 3 1007
1 Best answer
Expert Alumni
Jan 26, 2022 10:11:06 AM

How did you form the business? Was it a simple Sole Proprietorship or a single-member LLC? If so, you don't have to do anything.

3 Replies
Expert Alumni
Jan 26, 2022 10:11:06 AM

How did you form the business? Was it a simple Sole Proprietorship or a single-member LLC? If so, you don't have to do anything.

Level 1
Jan 26, 2022 10:12:48 AM

It was a simple sole proprietorship 

Expert Alumni
Jan 26, 2022 10:27:05 AM

Then you don't have to do anything. It is a non-issue.