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Annual LLC tax to California's Franchise Tax Board (FTB) within 3-1/2 months of formation. A little help?
If you register an LLC in CA on February 15, 2015, you will owe $800 toward your 2015 CA tax on May 15, 2015. Assuming you will be a calendar year LLC, you will owe $800 on April 15, 2016 for your 2016 fee. Im not sure how much Liability insurance is but compare that to $800 a year.
Additionally, when your CA source income exceeds $250,000 you will start to owe more fee to CA. This maxes out at $5m+ income with a fee of $11,790.
CA is one of only a few states that taxes partnerships at the entity level through these fees. If you are doing business there and you want to be an LLC then you just have to pay it.
More on reddit.comLetter from California Franchise Tax Board
Although I am a Texas lawyer, a lot of my clients have businesses in California so I can offer my thoughts.
Even if you do not meet the taxable threshold amount, you still have to file a franchise tax return to report your income (or lack thereof). If you don't, the franchise board is going to assume you made at least $70,000.
By the way, from my recollection, California charges minimum $800 a year in franchise tax, regardless of how much money you've actually earned. You need to determine if this applies to your entity type.
What you need to do is file a late franchise tax report for 2014, pay the $800 fee (if applicable) and probably a late penalty.
Did you dissolve the company in California? If not, you need to or else you may run into the same problem for tax year 2015.
More on reddit.comOverpaid my California Franchise Tax Board LLC Fee, Am I Screwed?
Call and ask. FTB is very helpful.
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