Taxes for my LLC.

[fuzzybabybunny]

I started business on May 01, 2009. California requires a minimum annual $800 tax for all LLCs.

http://www.ftb.ca.gov/forms/2009/09_3522.pdf

****

The annual LLC tax is due and payable by the 15th day of the 4th month after the beginning of the LLC?s taxable year (fiscal year) or April 15, 2009 (calendar year). The first taxable year of an LLC that was not previously in existence begins when the LLC is organized or registered with the California SOS. If the 15th day of the 4th month of an existing foreign LLC?s taxable year has passed before the foreign LLC commences business in California or registers with the SOS, the annual LLC tax should be paid immediately after commencing business or registering with the SOS.

Example: LLC1, a newly-formed calendar year taxpayer, organizes as an LLC in Delaware on June 1, 2009. LLC1 registers with the SOS on August 13, 2009, and begins doing business in California on August 14, 2009. Because LLC1?s initial taxable year began on June 1, 2009 the annual LLC tax is due by September 15, 2009 (the 15th day of the 4th month of the short period taxable year). LLC1?s short period (June 1, 2009-December 31, 2009) tax return is due by April 15, 2010. The annual tax payment for taxable year 2010, with form FTB 3522 also is due by April 15, 2010.

****

So a full $800 is due for me on August 2009 even though I HAVEN'T even been in business for 4 months out of the year? Then another $800 is due on April 01, 2010 for the 2010 year?

 

[dabuddha]

Talk to your tax guy?

 

[PokerGuy]

Yes, you would owe $800 in taxes on August 15th. It's not after 4 months of being incorporated or in business, it's the 15th day of the 4th month. Your first month in business (or rather, incorporated) would have been May, so August is the 4th month, so August 15th.

Side note: $800 for an LLC is brutal. Many (most?) other states don't charge any taxes related to an LLC over what you normally pay as a pass-through entity.

 

[LTC8K6]

Probably going to double now...

 

[fuzzybabybunny]

This is really making me think about incorporating in Nevada, but I don't think this would be possible since I won't have any kind of office or business center in Nevada.

 

[sao123]

Originally posted by: fuzzybabybunny
I started business on May 01, 2009. California requires a minimum annual $800 tax for all LLCs.

http://www.ftb.ca.gov/forms/2009/09_3522.pdf

****

The annual LLC tax is due and payable by the 15th day of the 4th month after the beginning of the LLC?s taxable year (fiscal year) or April 15, 2009 (calendar year). The first taxable year of an LLC that was not previously in existence begins when the LLC is organized or registered with the California SOS. If the 15th day of the 4th month of an existing foreign LLC?s taxable year has passed before the foreign LLC commences business in California or registers with the SOS, the annual LLC tax should be paid immediately after commencing business or registering with the SOS.

Example: LLC1, a newly-formed calendar year taxpayer, organizes as an LLC in Delaware on June 1, 2009. LLC1 registers with the SOS on August 13, 2009, and begins doing business in California on August 14, 2009. Because LLC1?s initial taxable year began on June 1, 2009 the annual LLC tax is due by September 15, 2009 (the 15th day of the 4th month of the short period taxable year). LLC1?s short period (June 1, 2009-December 31, 2009) tax return is due by April 15, 2010. The annual tax payment for taxable year 2010, with form FTB 3522 also is due by April 15, 2010.

****

So a full $800 is due for me on August 2009 even though I HAVEN'T even been in business for 4 months out of the year? Then another $800 is due on April 01, 2010 for the 2010 year?

B-B-B-But wait a minute... I thought california was the best state in the union...
Just one more reason the left coast should fall into the ocean...

 

[Beanie46]

For taxable years beginning on or after January 1, 2003, an LLC as described in
Internal Revenue Code Section 501(c)(2) and 501(c)(25) and California Revenue
and Taxation Code Sections 23701h and 23701x is exempt from the annual
LLC tax.

(In the section of Who Must Pay the Annual LLC Tax.)

Have you consulted those pubs to see if you fall into those categories at all? Seems that it would be prudent to consult those before sending off $800 needlessly.

But I really doubt you fall under those given you're probably a business, so I guess you're screwed and getting to help out CA with their budget deficit.

🙂

 

[ViviTheMage]

It's expensive in cali...Minnesota is about 115$ or so, with a 40$ recurring annual fee...

 

[PokerGuy]

Originally posted by: fuzzybabybunny
This is really making me think about incorporating in Nevada, but I don't think this would be possible since I won't have any kind of office or business center in Nevada.

You don't have to have any office or business center in Nevada. You can incorporate there without having any kind of dealings or presence there. If you do incorporate somewhere other than CA, you'll need to file a "foreign qualification" in CA. Not a big deal, just an extra form. It doesn't get you out of having to pay the tax though, you'll still need to pay the $800.

 

[PokerGuy]

Originally posted by: Beanie46

For taxable years beginning on or after January 1, 2003, an LLC as described in
Internal Revenue Code Section 501(c)(2) and 501(c)(25) and California Revenue
and Taxation Code Sections 23701h and 23701x is exempt from the annual
LLC tax.

(In the section of Who Must Pay the Annual LLC Tax.)

Have you consulted those pubs to see if you fall into those categories at all? Seems that it would be prudent to consult those before sending off $800 needlessly.

But I really doubt you fall under those given you're probably a business, so I guess you're screwed and getting to help out CA with their budget deficit.

🙂

Section 501(c) governs non-profit organizations. OP, if your business is a non-profit org, it's worth looking into.

 

[JulesMaximus]

Originally posted by: sao123

Originally posted by: fuzzybabybunny
I started business on May 01, 2009. California requires a minimum annual $800 tax for all LLCs.

http://www.ftb.ca.gov/forms/2009/09_3522.pdf

****

The annual LLC tax is due and payable by the 15th day of the 4th month after the beginning of the LLC?s taxable year (fiscal year) or April 15, 2009 (calendar year). The first taxable year of an LLC that was not previously in existence begins when the LLC is organized or registered with the California SOS. If the 15th day of the 4th month of an existing foreign LLC?s taxable year has passed before the foreign LLC commences business in California or registers with the SOS, the annual LLC tax should be paid immediately after commencing business or registering with the SOS.

Example: LLC1, a newly-formed calendar year taxpayer, organizes as an LLC in Delaware on June 1, 2009. LLC1 registers with the SOS on August 13, 2009, and begins doing business in California on August 14, 2009. Because LLC1?s initial taxable year began on June 1, 2009 the annual LLC tax is due by September 15, 2009 (the 15th day of the 4th month of the short period taxable year). LLC1?s short period (June 1, 2009-December 31, 2009) tax return is due by April 15, 2010. The annual tax payment for taxable year 2010, with form FTB 3522 also is due by April 15, 2010.

****

So a full $800 is due for me on August 2009 even though I HAVEN'T even been in business for 4 months out of the year? Then another $800 is due on April 01, 2010 for the 2010 year?

B-B-B-But wait a minute... I thought california was the best state in the union...
Just one more reason the left coast should fall into the ocean...

If you don't live here then why do you care?😕

 

[sactoking]

In California, any LLC, S-corp, or C-corp that's for-profit MUST PAY AT LEAST $800 in State tax REGARDLESS of where they are domiciled. It's California's "fuck you for doing business in our state" tax. Reorganizing in Nevada will not help.

 

[Slew Foot]

But just think of how many illegal immigrants youre buying school lunches for!

 

[CPA]

Originally posted by: fuzzybabybunny
This is really making me think about incorporating in Nevada, but I don't think this would be possible since I won't have any kind of office or business center in Nevada.

doesn't matter. You can incorporate in any state as long as your state doesn't disallow it.

edit: but by the posts above it wouldn't matter any way for this tax. The one benefit, however, is that you won't have to pay franchise tax to Cali if you incorporate in Nevada.

 

[Syringer]

Originally posted by: sao123

Originally posted by: fuzzybabybunny
I started business on May 01, 2009. California requires a minimum annual $800 tax for all LLCs.

http://www.ftb.ca.gov/forms/2009/09_3522.pdf

****

The annual LLC tax is due and payable by the 15th day of the 4th month after the beginning of the LLC?s taxable year (fiscal year) or April 15, 2009 (calendar year). The first taxable year of an LLC that was not previously in existence begins when the LLC is organized or registered with the California SOS. If the 15th day of the 4th month of an existing foreign LLC?s taxable year has passed before the foreign LLC commences business in California or registers with the SOS, the annual LLC tax should be paid immediately after commencing business or registering with the SOS.

Example: LLC1, a newly-formed calendar year taxpayer, organizes as an LLC in Delaware on June 1, 2009. LLC1 registers with the SOS on August 13, 2009, and begins doing business in California on August 14, 2009. Because LLC1?s initial taxable year began on June 1, 2009 the annual LLC tax is due by September 15, 2009 (the 15th day of the 4th month of the short period taxable year). LLC1?s short period (June 1, 2009-December 31, 2009) tax return is due by April 15, 2010. The annual tax payment for taxable year 2010, with form FTB 3522 also is due by April 15, 2010.

****

So a full $800 is due for me on August 2009 even though I HAVEN'T even been in business for 4 months out of the year? Then another $800 is due on April 01, 2010 for the 2010 year?

B-B-B-But wait a minute... I thought california was the best state in the union...
Just one more reason the left coast should fall into the ocean...

😕 The most populated areas (or the places that everyone wants to live) generally have the highest taxes, i.e. CA/NY. The other states that no one wants to live in, e.g. Bismarck, ND or Cheyenne, WY, or Anchorage, AK have to have very low taxes, or even pay their residents in order to keep them there.

 

[fuzzybabybunny]

Originally posted by: PokerGuy

Originally posted by: Beanie46

For taxable years beginning on or after January 1, 2003, an LLC as described in
Internal Revenue Code Section 501(c)(2) and 501(c)(25) and California Revenue
and Taxation Code Sections 23701h and 23701x is exempt from the annual
LLC tax.

(In the section of Who Must Pay the Annual LLC Tax.)

Have you consulted those pubs to see if you fall into those categories at all? Seems that it would be prudent to consult those before sending off $800 needlessly.

But I really doubt you fall under those given you're probably a business, so I guess you're screwed and getting to help out CA with their budget deficit.

🙂

Section 501(c) governs non-profit organizations. OP, if your business is a non-profit org, it's worth looking into.

Nope, it's definitely for profit. Looks like I need to make enough money to cover frickin' $800 in the next four months - and I'm hardly making enough as it is to cover rent. Actually, I'm NOT making enough to even cover rent. Yippee!

 

[ElFenix]

Originally posted by: CPA

Originally posted by: fuzzybabybunny
This is really making me think about incorporating in Nevada, but I don't think this would be possible since I won't have any kind of office or business center in Nevada.

doesn't matter. You can incorporate in any state as long as your state doesn't disallow it.

he'll have to figure out the steps to qualify to do business in CA though. it may be the same amount of $$.

 

[Ns1]

Originally posted by: ElFenix

Originally posted by: CPA

Originally posted by: fuzzybabybunny
This is really making me think about incorporating in Nevada, but I don't think this would be possible since I won't have any kind of office or business center in Nevada.

doesn't matter. You can incorporate in any state as long as your state doesn't disallow it.

he'll have to figure out the steps to qualify to do business in CA though. it may be the same amount of $$.

Let's not forget the shitloads of paperwork etc that he'll need. you'll DEFINITELY need a cpa if you're going to incorporate in another state...

Unless you have something that makes you super liable OR you have a ton of assets, why don't you just do a sole prop?

Not only will you save on the LLC fee, you'll also save on assorted paperwork (aka accountant fees)

 

[JS80]

Originally posted by: fuzzybabybunny

Originally posted by: PokerGuy

Originally posted by: Beanie46

For taxable years beginning on or after January 1, 2003, an LLC as described in
Internal Revenue Code Section 501(c)(2) and 501(c)(25) and California Revenue
and Taxation Code Sections 23701h and 23701x is exempt from the annual
LLC tax.

(In the section of Who Must Pay the Annual LLC Tax.)

Have you consulted those pubs to see if you fall into those categories at all? Seems that it would be prudent to consult those before sending off $800 needlessly.

But I really doubt you fall under those given you're probably a business, so I guess you're screwed and getting to help out CA with their budget deficit.

🙂

Section 501(c) governs non-profit organizations. OP, if your business is a non-profit org, it's worth looking into.

Nope, it's definitely for profit. Looks like I need to make enough money to cover frickin' $800 in the next four months - and I'm hardly making enough as it is to cover rent. Actually, I'm NOT making enough to even cover rent. Yippee!

lol why did you do an LLC for a photography biz? What liability are you afraid of? What assets are you protecting?

 

[jamesave]

start it with sole prop

then change it to LLC when it's getting bigger.

 

[mugs]

Did some of you asslickers get lost on the way to P&N? 😕

 

[AccruedExpenditure]

Should have gotten a CA LLC if you couldn't pay an 800 dollar tax

 

[shopbruin]

Remember to file the statement of information also.

 

[BeauJangles]

Originally posted by: JS80

Originally posted by: fuzzybabybunny

Originally posted by: PokerGuy

Originally posted by: Beanie46

For taxable years beginning on or after January 1, 2003, an LLC as described in
Internal Revenue Code Section 501(c)(2) and 501(c)(25) and California Revenue
and Taxation Code Sections 23701h and 23701x is exempt from the annual
LLC tax.

(In the section of Who Must Pay the Annual LLC Tax.)

Have you consulted those pubs to see if you fall into those categories at all? Seems that it would be prudent to consult those before sending off $800 needlessly.

But I really doubt you fall under those given you're probably a business, so I guess you're screwed and getting to help out CA with their budget deficit.

🙂

Section 501(c) governs non-profit organizations. OP, if your business is a non-profit org, it's worth looking into.

Nope, it's definitely for profit. Looks like I need to make enough money to cover frickin' $800 in the next four months - and I'm hardly making enough as it is to cover rent. Actually, I'm NOT making enough to even cover rent. Yippee!

lol why did you do an LLC for a photography biz? What liability are you afraid of? What assets are you protecting?

I was wondering the same thing. Seems silly.

 

[IceBergSLiM]

for that much your better off defaulting on the tax dissolving the business and re-filing in a more friendly state.