How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lane Your Own Question
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10796
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
1929974
Type Your Tax Question Here...
Lane is online now
A new question is answered every 9 seconds

How do we inform IRS regarding closing of a business, sole

This answer was rated:

How do we inform IRS regarding closing of a business, sole proprietorship, do have EIN for the business and no assets or anything.

Lane :

Hi,

Lane :

Sole proprietors can decide by themselves that they should close up shop. Whereas if your business is a partnership, limited liability company (LLC), or a corporation you and your co-owners must make the decision to dissolve the entity according to the guidelines established in your articles of organization. Remember to document the final decision with a written agreement.

Lane :

Since there's no FINAL RETURN box (as there is on an 1120 s for an s-corp or 1065 got a partnership)

Lane :

Since a sole proprietorship is a "disregarded entity" and you just file the schedule C as a part of your 1040

Lane :

Here's an excellent piece on this: http://www.sba.gov/content/steps-closing-business

Lane :

As the article mentions, depending on any city/county/ other municipality licensing, etc, you may want to go through whatever process any licensing you may have there requires ... but since you've never incorporated there's no STATE dissolution, and again, you were being taxed as a pass-through entity by IRS, so there's nothing to do there

Lane :

you'll still havew your 1040 of course, just no schedule C

Lane :

And finally, in the event that you had a payroll or other employee issues, here a good checklist to be sure you've covered everything: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Closing-a-Business-Checklist

Lane :

I still don't see you coming into the chat session, so I'll move us to the "Q&A" mode. … Maybe that will help … (We can still continue a dialogue there, just not in real-time chat, as we can here)

Lane :

Let me know if you have any questions at all

Lane :

Lane

Lane :

If this HAS helped, I would appreciate a feedback rating of 3 (OK) or better … That's the only way they will pay us here.


HOWEVER, if you need more on this, PLEASE COME BACK here, so you won't be charged for another question.

Lane and 2 other Tax Specialists are ready to help you

Hi Shahid,

... just checking back in, as I never saw you come into the chat.

Let me know if you have any questions.

Lane

Thanks much for the rating!


If you'd like to work with ME again just say "For Lane only," at the beginning of your next question.


Thanks again,

Lane

Related Tax Questions