I am a freelancer in Los Angeles, make less than 100k a year, and I didn't know that I had to be registered as a small business. I got a letter in the mail from the California Franchise Tax Board saying I need to register and report previous years' gross receipts. (For reference, I have been "operating my business" as a freelancer for 2021, 2022, 2023, and 2024.) I'm terrified of being penalized and having to pay a bunch of money that I would have been exempted from if I had known.
Has anyone ever gotten out of paying penalties and late fees with the CFTB? Does anyone have any advice on how to navigate this? I've read through all the posts on here about CFTB but just wanted to ask. Any help would be appreciated...
For clarity - I live within the city of Los Angeles, I have not made more than 100k a year, and I would qualify for the creative artist exemption.