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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
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Experience:  Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
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How do we inform IRS regarding closing of a business, sole

Resolved Question:

How do we inform IRS regarding closing of a business, sole proprietorship, do have EIN for the business and no assets or anything.
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

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, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 4360
Experience: Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
Lane and other Tax Specialists are ready to help you
Expert:  Lane replied 1 year ago.
Our chat has ended, but you can still continue to ask me questions here until you are satisfied with your answer. Come back to this page to view our conversation and any other new information.

What happens now?

If you haven’t already done so, please rate your answer above. Or, you can reply to me using the box below.
Expert:  Lane replied 1 year ago.

Hi Shahid,

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

Let me know if you have any questions.

Lane
Expert:  Lane replied 1 year ago.

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

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Lane
Lane
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Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986