Tax implications of closing business?

My wife and I set up an LLC and bought a furniture store last year for 120K that is doing terrible, I am considering closing it this year. If I close it, do I get to deduct the 120K against my 2009 income, thus reducing my taxable income tremendously? Or, is it like a capital loss that I only get to deduct 3K of per year for the next 40 years or so? Our LLC is set up to p income/loss through to the owners (my wife and I).