1040 NR Final Tax Return, California final tax return questions

[EmsBTW2016]

Hello!

I have some questions on a client who is a nonresident alien with a US business that is going to be dissolved this year. I want to make sure I have all ducks in a row and do everything needed before we dissolve the LLC and stop filing.

General Details:

• Client has an LLC in the US that was formed a few years ago.
• 2020- 2021 income is solely royalty income that is not connected to any state in the US.
• Client permanently lives in another country which is their home and has not traveled to the US since 2019. Due to covid this client will be solely working in their home country for the foreseeable future. Client plans to dissolve the LLC in 2021.
• We are filing a 2020 1040 NR due to the US LLC still being active even though there is minimal activity and the business overall has a loss 
• The client had business expenses related to the LLC in 2020 which caused the client to have a loss on the 2020 tax return (1040NR). We are going to carry back this NOL to 2015 (when the client had income) via 1045. 

California Details:

• Client has been filing in California because that is where they worked and earned their income while in the US in the past
• Client has not lived or worked in California since 2015. Prior firm continued filing in CA in case client received any income in relation to work done in CA. 
• Client filed a 2019 California tax return last year for the sole purpose of receiving a small CA refund.  

Questions:

1. Is there anything we need to do to notify CA that we are no longer filing?
2. We plan to file a 2021 return to report activity (which will be minimal) from 1/1/21 to the date we dissolve the LLC. Is there anything that needs to be done in terms of a "final" 1040-NR return - maybe attach a statement? I don't want any red flags coming up when we stop filing after 2021.

Thank you!