Question

Mid-year dissolution of LLC

Forum|Forum|5 years ago
February 14, 2021
1 reply
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I dissolved my LLC mid-year and now operate the business as a Schedule C sole proprietorship. I have indicated in TurboTax that this is the final return for the LLC. The program is saying I need to dispose of the LLC assets. Inventory is the only asset but does not show in the Asset list under Disposal. How do I properly indicate that the inventory has been sold, at cost, to myself as an individual?

TurboTax Business Windows

Rick19744

Employee

Need some additional information:

Is your balance sheet showing zero at the end of the year?
You indicate that "You" dissolved "MY" LLC.
- Was this a multi-member LLC being taxed as a partnership, or
- Was this a multi-member LLC taxed as an S corporation
How many members were there?

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.

D

daleanthAuthor

Thanks for the quick reply, CHAMP!

This was a multi-member LLC - a partnership between my wife and myself, taxed as a partnership. So technically "we" dissovled the LLC.

At the end of 2019 balance sheet assets were just inventory on hand and cash in a couple of accounts. Unfortunately, I have not produced a balance sheet for the end of 2020 at this time.

Any further guidance is most appreciated.