I formed my DBA into a Single Member LLC as of November 2022.
According to this page on the Franchise Tax Board (https://www.ftb.ca.gov/file/business/types/limited-liability-company/index.html - the following is copied directly from that page):
Exceptions to the first year annual tax
For tax years beginning on or after January 1, 2021, and before January 1, 2024, LLCs that organize, register, or file with the Secretary of State to do business in California are not subject to the annual tax of $800 for their first tax year.
Am I correct in interpretting this to mean that I do NOT have to pay the $800 or file the 568 at all with my 2022 taxes?
And that my first filing will be by April 15th 2024 for my 2023 taxes, correct? (It says: "Return due date-
15th day of the 4th month after the close of your tax year.")
I'm not sure how you would interpret that any other way, but a confirmation would ease my mind. 🙂
Thank you!
According to Form 568 instructions, a form 568 must be filed if any of the following exist.
It doesn't mention specifically in the source document that you provided that Form 568 is waived, only you do not need to pay the $800 tax that is levied against you in the first year. Based on this, I would advise you not to assume that you do not need to file Form 568. I could not find a reference source that specifically mentions the 568 is waived in the first year of operation.
In any case, your tax return is always due on the 15th day on the fourth month. This means that if you file on a calendar year basis, that would be April 15. If you operate on a fiscal year, it would be the 4th month after the close of your tax year. For an example, if your tax year ended on Sept 30, your tax return is due Jan 15 in the following year. Just using this as an example just in case if you do not use a calendar year.
According to Form 568 instructions, a form 568 must be filed if any of the following exist.
It doesn't mention specifically in the source document that you provided that Form 568 is waived, only you do not need to pay the $800 tax that is levied against you in the first year. Based on this, I would advise you not to assume that you do not need to file Form 568. I could not find a reference source that specifically mentions the 568 is waived in the first year of operation.
In any case, your tax return is always due on the 15th day on the fourth month. This means that if you file on a calendar year basis, that would be April 15. If you operate on a fiscal year, it would be the 4th month after the close of your tax year. For an example, if your tax year ended on Sept 30, your tax return is due Jan 15 in the following year. Just using this as an example just in case if you do not use a calendar year.