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collegecamel
Returning Member

Formed a LLC on New Years, filed dissolution today.

I paid to have my first LLC formed in CA on New Years Eve.  Shortly afterwards I decided I could just do the internet marketing I had planned as a sole proprietor.  I emailed the company that was handling the formation less than an hour later, requesting they don't form the LLC, but they were out of the office for the holidays and the weekend.  I didn't hear back from them for 3 days and it was submitted to the Secretary of State before they were able to read my request and is now Active.
 
Today I filed a dissolution with the SOS, and part of that process involves filing a Final return with the Franchise Tax Board.  There was no business conducted, but I am still required to file.  I am currently an unemployed college student that is a caretaker for my disabled father, and I am feeling a bit overwhelmed. My mother also tested positive for the coronavirus recently and my anxiety has been difficult to overcome.  H&R Block seems to charge $350 for this service, is there a better alternative?
 
Thank you.
1 Best answer

Accepted Solutions
Mike9241
Level 6

Formed a LLC on New Years, filed dissolution today.

Annual Tax
Every LLC that is doing business or organized in California must pay an annual tax of $800 BUT.

This yearly tax will be due, even if you are not conducting business, until you cancel your LLC.

Exceptions to the first year annual tax
LLCs are not subject to the annual tax and fee if both of the following are true:

They did not conduct any business in California during the tax year
Their tax year was 15 days or fewer

you must file forms 568 and form LLC 4/8

 

https://bpd.cdn.sos.ca.gov/llc/forms/llc-4-8.pdf

This form can be completed online and mailed.  make sure you read the instructions

 

could not locate a link for 2020 form 568. maybe CA has not finalized the return. 

consider yourself lucky. you don't have to pay the annual $800 LLC fee. 

 

 

 

View solution in original post

3 Replies
Mike9241
Level 6

Formed a LLC on New Years, filed dissolution today.

Annual Tax
Every LLC that is doing business or organized in California must pay an annual tax of $800 BUT.

This yearly tax will be due, even if you are not conducting business, until you cancel your LLC.

Exceptions to the first year annual tax
LLCs are not subject to the annual tax and fee if both of the following are true:

They did not conduct any business in California during the tax year
Their tax year was 15 days or fewer

you must file forms 568 and form LLC 4/8

 

https://bpd.cdn.sos.ca.gov/llc/forms/llc-4-8.pdf

This form can be completed online and mailed.  make sure you read the instructions

 

could not locate a link for 2020 form 568. maybe CA has not finalized the return. 

consider yourself lucky. you don't have to pay the annual $800 LLC fee. 

 

 

 

View solution in original post

collegecamel
Returning Member

Formed a LLC on New Years, filed dissolution today.

Thanks for the response.  I am aware I don't have to pay the $800 fee.  I filed the Short Form of Cancellation today.  And yes, Form 568 for 2020 is not available, but that is the one I need to get filed with the FTB.  I don't trust myself to fill it out correctly, so I'll probably have to pay a couple hundred dollars to a professional...

Opus 17
Level 15

Formed a LLC on New Years, filed dissolution today.

For your federal income tax, it doesn't matter if you are a sole proprietorship or a single member LLC.  You file as a disregarded entity, which means you report your business income and expenses on a schedule C that is filed as part of your personal tax return.  If filing your taxes with Turbotax Online, you would need the Self-Employed version, which is currently $90 federal plus $50 state.  You can upgrade to Turbotax Live, where you get online chat help from a CPA, or Full Service, which is what it says.

https://turbotax.intuit.com/personal-taxes/online/

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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