sch c is not a separate legal business, as i understand it... i believe that it is a group of assets (including goodwill) that are owned by the proprietor (this is probably more a style issue than anything).  the truck is valued at date of death value, the goodwill is valued then, as are each of the assets.  i would show them all together as "assets of sole proprietorship known as...:"  and then list each asset with its value.  we also show debt in the same listing.   i indent and number separately each asset and/or liability (negative asset).

and so, yes there is a step-up... and usually a new asset (goodwill)!  if the business is sold post-death, its often the goodwill that is the main asset being sold (in a healthy sole prop)