how to file a final Schedule C

Question

If you have a one-person LLC you may file a Schedule C instead of

1065, provided the LLC has not elected to be taxed as a corporation. On 1065 you can mark the return is final. You can do the same on California 568. But if you file Schedule C then how do you do it?

Alan · Accepted Answer

You don't do anything. No business, no Schedule C is filed. When you end a partnership and final distributions are made to the partners, they have to account for their basis in the partnership. Not true with a sole proprietor.

removeps-groups · Answer

LLC you may file a Schedule C instead of

But the authorities need to know that the LLC is now defunct. How to tell them that? For example, if 1099-MISC's are issued with the defunct LLC's EIN, then this means there is a case of identity theft. Besides, if California does not know, they will happily bill $800 every year for the the minimum tax. I suppose the state dissolution document is sufficient.

Also, if your LLC was 5 person, but is now one person, do you have to continue filing 1065 or can you file Schedule C?

Alan · Answer

one-person LLC you may file a Schedule C instead of

I wasn't even thinking about the state. My response was toward the federal requirement where there is no form or schedule for sole proprietors who cease operations whether they use an SSN or EIN. See California's guide to dissolving a business entity:

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how to file a final Schedule C

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