Question

Closing a 1099 S-Corp Business that was never started/launched

Forum|Forum|1 year ago
August 20, 2024
1 reply
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A little background: I opened a 1099 business filing as an S-Corp in April of this year. Unfortunately, the business was not launched as my family decided to move to a different state. We are now opening the same type of business in the new state and closing the old business. Given the old business was never launched, we didn't generate revenue but incurred expenses (office equipment, licensing, etc.).

My questions are; do I need to file quarterlies or a final tax statement with the IRS for closing the business? Will I be able to deduct the expenses for the closed business?

Thank you in advance for any help!

Not A Product Question

Terri Lynn 11

Hello WH67, and thanks for the questions.

The IRS 941 quarterly's would be required, if the S-Corp has paid wages to any employees. Since your S-Corp business closed, you are required to file a final form 1120-S closing return and can include the applicable expenses even with $0 in revenue.

For more information see:

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Terri Lynn