Closing a business
 

We had a little kiosk in the mall last xmas. Got a tax ID etc. How do I close the business as we have decided not to do it agian this year?

File one last corporate return, depending on the entity type.

C Corp - 1120
S Corp - 1120s
Partnership - 1065
LLC - 1065
Single member LLC, reported as a schedule C on your 1040 - a schedule C on your 1040

On these forms, there's a spot to check "final return." Make sure that it's checked. If you handed out K-1s, make sure they have "final" checked on them as well.

Depending on your entity type, you may have tax due on the final liquidation. Doubtful if you're just a small operation, but it never hurts to check. Spend the cash and have a tax professional help you out on this one.

2003 return files as a part of my individual return...busines just a sole prop. Will get professional as U suggested. Thanks for the advice.

Hmmm - why'd you get a tax ID for a sole prop?

If that's all you have, then reporting just the income and expenses should be fine. But again, you might want some help.

Didn't know what I was doing. Flying by the seat of my pants. Will get some prof help. Thaks again

No prob. Should be pretty simple if you're organized.

i have a similar situation. i filed last year (beg. of '04) my final return (1120). I already mailed back the sales tax certificate to the state but i have yet to pay the 800 in the annual tax for having an LLC. what is the penalty? i didnt know i had to pay 800.00 bucks so im working to pay that off before tax time of '05