Hey folks, make sure to check the site for most up-to-date information: https://www.llcuniversity.com/california-llc/annual-llc-tax/. Or select your state and start forming your LLC with our free guides: https://www.llcuniversity.com/
Hi Ryan, nope. If your LLC is approved on January 15 2019, January is "month 1". The 2019 payment will be due by April 15th 2019. The second payment will be due by April 15th 2020. However, if you file your LLC online, you can choose your effective date ("future file date"). We're pushing an update live on this page within the hour: https://www.llcuniversity.com/california-llc/forms/. You'll be able to find the instructions there. Hope that helps :)
Hey Hilary, if you form an LLC in February 2019, no, your first payment is not due on April 15th. Your payment for 2019 is due by May 15th, 2019. Then the following year (2020) and all years following, it'll be due by April 15th. Hope that helps.
Bummer to hear that. We recommend calling as early as possible for the shortest wait times. People are usually friendlier at that hour.. and same things goes for calling on a Monday or a Tuesday morning. Hope that helps.
Hi Cesar, we're not too familiar with the details of the logistics industry, so I recommend reaching out to an accountant. Some recommendations on finding one are here: https://www.llcuniversity.com/how-to-find-an-accountant-for-your-llc/. I believe the tax details (if they are owed, what's filed, how much, etc.) are around whether you are purchasing new, the weight of the vehicle, if modifications are made, and there may be a tax on highway usage. Hope that helps.
I'm not 100% sure, but it would have been nice that you were properly informed. Apologies to hear :( But also glad you've found out now... and it didn't go to long unnoticed (I'm an optimist ;) I recommend calling the California Franchise Tax Board and ask for a review of your account and to see how much you owe and what needs to be filed. I recommend calling them early in the morning to avoid longer hold times. Hope that helps.
when legal zoom set my llc for me in 2015 wouldnt they have provided me this information?? im so annoyed im just learning this? no letters or nothing asking me for money... what is a person supposed to do or think when they see this???
Hi Ashley, you still have the pay the $800 Annual Franchise Tax every year (Form 3522) regardless of income or activity. If you make less than $250,000, then you don't have to file the Estimate Fee (Form 3536). Note, you must also file CA LLC Return of Income every year (Form 568). You can find more details here: https://www.llcuniversity.com/california-llc/annual-llc-tax/. Hope that helps.
We have dissolution items on our list, but they won't be out for a while. Here's the instructions though. Use form LLC-4/7 (if all LLC Members agree to shut down). You can find that form here: http://bpd.cdn.sos.ca.gov/llc/forms/llc-3--4-7.pdf (pages 6, 7, and 8). There is no filing fee with the Secretary of State, however, you must file a final return with the CA Franchise Tax Board. Hope that helps.
Hi Edgar, nope, you won't have to pay $1,600. It'll just be $800. You'll be making your 2018 payment the "15th day of the 4th month" after your LLC is approved. So if you're LLC is approved in January, January will count as "month 1". Meaning, your 2018 payment (of $800) will be due by April 15th, 2018. You'll then make each year's payment by April 15th. So 2019's payment will be due by April 15th, 2019, and so on. If your LLC is approved in February, your 2018 $800 payment will be due by May 15th, 2018. Hope that helps!
Hi, I have a doubt about franchise tax, my company doing staffing business incorporated in Texas we don't have any franchises in California but some of the employees worked from CA state (W-2 employees and 1099) please let me know do we need to file a franchise tax for CA state.
Hi Murali, we cannot offer tax assistance, as this is not our area of expertise. We recommend speaking with an accountant (or a few). We have more information here: https://www.llcuniversity.com/how-to-find-an-accountant-for-your-llc/.
Hi Dave, we're unable to answer tax questions like that and I'm honestly not sure. The CA Franchise Tax Board can be strict. I'm sorry to leaving you hanging and wish I could be more specific. I recommend giving our "knights of the roundtable" strategy a go. Details are here: https://www.llcuniversity.com/how-to-find-an-accountant-for-your-llc/
Is the $800.00 annual fee due by the 4th month of the initial LLC registration (From LLC-1)? or by the 4th month from the filing of the Statement Of Information (Form LLC-12)? Both forms are not always filed together it seems.
Your Articles of Organization should just have one "FILED" stamp. The 12-digit number at the top is your California Secretary of State File Number. So in your case, I'd assume your LLC was approved in May and your payment is due by August 15th. Hope that helps. If you're not sure, just file in August anyway. Worse case: it's a little early ;)
I noticed that most articles refer to 4th month from 'filing' but you talked about 'Approval' so can you clarify for me -
a) I submitted my forms at the end of May. It was stamped 'Filed' in May.
b) I believe approval was granted first working week of June (there's a second stamp with a June date above the SOS signature on the final page of the document)
My question is - when is the $800 due for me - August or September?
It is the 4th month after the approval of your Articles of Organization (LLC-1). So if your LLC is stamped today (June 26th), June is "month 1". So the first $800 payment (which pays for the 2017 year) is due by September 15th 2017. In 2018, it's due by April 15th. In 2019, it's also due by April 15th. And so on for every year going forward.
The first payment of the CA Franchise Tax is due the 15th day of the 4th month after the LLC is formed. March is considered "month 1", so your first payment is due by June 15th 2017. This pays for the 2017 tax year. Then your next payment will be due by April 15th 2018. Then it's just April 15th every year going forward. Hope that helps!
My member & I founded our LLC in oct 2015 but closed it in dec 2016. We didn't file taxes for 2015. We haven't done any business or made any profits throughout the life of the llc. Aside from paying the franchise tax board, what other fees or penalties should I expect? We didn't make any money so I'm also not sure how to report it. I'm not sure whether we should file it as a corporation or a llc-partnership etc. What's your advice?
Hi Sanjay, thanks for voicing your concerns. Our CA videos are best viewed on this guide: https://www.llcuniversity.com/california-llc/. They are laid out in a better order. You'll find LLC-12 (Statement of Info) video here: https://www.youtube.com/watch?v=XEzLASCt46k. Regarding 1065 and K1s, we advise you work with an accountant on that. Our video series does not cover taxes due to the wide variation in types of business, where they are located, and how they derive their income. I hope that's helpful. Let me know if you need anything else.
thanks a lot. I noticed that you missed quite a few filing requirements. LLC12 which needs to be filed in 3 months with 20$ fee and not filing in 3 months, they will charge 250$ penality. what a way to make money. another is form 1065/ schedule k1. can you please comment on these ?
Hey Sanjay, great question. Yea, the due dates are quite confusing. Since your LLC existing in 2016, you owe a franchise tax for that year (was due Jan 15th, 2017). Then your 2017 payment is due by April 15th, 2017. After that, you'll pay and file it every year, due by April 15th, 2017. You kind of have "back to back" payments because the LLC existing in 2016 for a few months. Hope that helps clarify.
Very helpful videos! Wish I had found them when I filed my LLC, as I missed reading the part about paying the Annual LLC Franchise Tax immediately after filing and am several months overdue.
I called the CA State Taxpayer service center, and in my case, since it was before the end of my first taxable year the penalty fee should only be $30. If I had missed paying after the first taxable year, it could have increased to $200+. I was told to pay the late $800 tax asap, then wait for a bill to pay the penalty fee. Also, I shouldn't forget to pay for the next years $800 tax as well, obviously.
Hope that helps anyone else who might have made the same mistake!
Thanks so much!! These types of comments make my day!!! :) We work really hard to make our information super easy and actionable. So glad it was helpful for you. Our full CA course is here if you need it: https://www.llcuniversity.com/california-llc/ (lessons in sidebar). Let me know if you need anything else!
Facilities for business continuity may include alternate workspace equipped for continuation of business operations. Alternate facilities may be owned or contracted including office space, data center, manufacturing and distribution.
Systems for emergency response may include detection, alarm, warning, communications, suppression and pollution control systems. Protection of critical equipment within a data center may include sensors monitoring heat, humidity and attempts to penetrate computer firewalls.
Every building has exit routes so people can evacuate if there is a hazard within the building. These exit routes should be designed and maintained in accordance with applicable regulations.
Business continuity resources may include spare or redundant systems that serve as a backup in case primary systems fail. Systems for crisis communications may include existing voice and data technology for communicating with customers, employees and others.
Equipment includes the means for teams to communicate. Radios, smartphones, wired telephone and pagers may be required to alert team members to respond, to notify public agencies or contractors and to communicate with other team members to manage an incident.
Many tools may be required to prepare a facility for a forecast event such as a hurricane, flooding or severe winter storm.
Materials and Supplies.
Materials and supplies are needed to support members of emergency response, business continuity and crisis communications teams. Food and water are basic provisions.
Systems and equipment needed to support the preparedness program require fuel. Emergency generators and diesel engine driven fire pumps should have a fuel supply that meets national standards or local regulatory requirements. That means not allowing the fuel supply to run low because replenishment may not be possible during an emergency. Spare batteries for portable radios and chargers for smartphones and other communications devices should be available.