topic Re: LLC in Business & farm

LLC

CindyS1 — Sun, 23 Feb 2020 23:44:22 GMT

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

Re: LLC

ColeenD3 — Mon, 24 Feb 2020 20:10:17 GMT

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.

Re: LLC

Rick19744 — Mon, 24 Feb 2020 20:58:13 GMT

@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".