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If you are running a business, there always will be some type of "business" return to file. If you switch to single member LLC you will still have to file Schedule C - profit and loss from business with your 1040. If you have employees, you will still have to file payroll returns/taxes as well. Schedule C is not a separate tax return like 1120 but you will still have to separate your income and expenses and pay self-employment tax (social security and Medicare tax that is currently paid by the Scorp) You cannot just declare the net profit as capital gains.
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