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I freelanced full-time for 6+ years through a single-member LLC, which I closed at the end of last year after I moved to a new full-time job. I was a user experience designer/researcher and designed web applications, websites, and mobile apps for several dozen clients. Now that the LLC is closed, I have some questions:

  1. I continue to use my main business laptop for personal use now. How do I handle this on my taxes? (TurboTax Home & Business is very confusing here.)
  2. Liability and E&O insurance has been one of my business’s largest expenses every year. Do I need to keep renewing it? If so, for how long?
  3. One of my clients was a family member, and in order to be this person’s one-stop shop for their websites I provided services that I didn’t normally provide to other clients (web development, web hosting, and some content strategy). I’m no longer actively working on their sites, but their domain names and hosting are still under my business’s DreamHost account. May I continue to do their web hosting?
  4. Is there anything else that I generally need to know or do with respect to this closed business?
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I'm assuming that you did not elect to have your LLC treated for tax purposes as a corporation.

  1. The IRS doesn't view your single-member LLC as an entity separate from you, there is nothing you need to do from a tax perspective if you continue to use your business assets for personal use, but if you sell an asset in the future that you depreciated there will be tax owed.
  2. You'd probably want to speak to an attorney about this one, but I'd imagine if you aren't actively working in client environments then you no longer have exposure and therefore no need to insure. Could vary based on wording in your engagement agreements.
  3. To the IRS your business was just you, so ditching the LLC doesn't really matter to them. If you have income and expenses from this activity you'll just report in on Schedule C like you did with your single-member LLC income, but you'd leave line C blank rather than putting the name of your LLC.
  4. Might double check that the LLC is properly dissolved in the eyes of the state, lest you incur annual fees.

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