LLC

[CindyS1]

Im a small business owner with an LLC. i paid california Franchise Tax board 800 in order to have a business here.  where do i deduct it on my taxes? Im assuming it’s a calif deduction but not sure. 

TIA

[ColeenD3]

What exactly was the $800 for? What name did they give the fee? Was it actually a tax?

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

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

• You have until the 15th day of the 4th month from the date you file with the SOS to pay your first-year annual tax.
  • Example: You form a new LLC and register with SOS on June 18, 2020. Your annual LLC tax will be due on September 15, 2020 (15th day of the 4th month)
• Your subsequent annual tax payments will continue to be due on the 15th day of the 4th month of your taxable year.

Please see this LINK for more information.

[Rick19744]

@ColeenD3 this is a franchise tax for the privilege of doing business in California.  The $800 is the minimum franchise tax fee.

I would put it in misc expense and label it "Calif Franchise Tax".