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Ann46
Returning Member

LLC

I had terminated my LLC in California on June 2023 would I still have to pay the 800 annual fee for this coming taxes at the end of this year ? I have paid form 3522 for 2023 of 800 for my recent 2022 taxes.

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1 Best answer

Accepted Solutions
Esther M
Employee Tax Expert

LLC

Hi Ann46,

If you terminated your LLC in 2023, unfortunately you will still have to pay the $800 for the year 2023. It cannot be pro-rated.  You need to make sure you register your articles of dissolution with the Secretary of State and file your Final Return otherwise it is assumed that the LLC is still operating in California. Here's the information from the CA Franchise Tax Board.

Cancel your LLC

Registered with SOS

If you close your business, you must file the required paperwork with the Secretary of State and us.

With us you must:

  • File your final current year tax return. Check the applicable Final Return box on the first page of the return
  • Stop doing business in California after the final taxable year

Who Must Pay the Annual LLC Tax

Every LLC that is doing business in California or that has articles of organization accepted or a certificate of registration issued by the SOS is subject to the $800 annual LLC tax. The tax must be paid for each taxable year until a certificate of cancellation of registration or of articles of organization is filed with the SOS. Get FTB Pub. 1038, Guide to Dissolve, Surrender, or Cancel a California Business Entity, for more information. For taxable years beginning on or after January 1, 2003, an LLC as described in Internal Revenue Code Sections 501(c)(2) and 501(c)(25) and California Revenue and Taxation Code Sections 23701h and 23701x is exempt from the annual LLC tax. For taxable years beginning on or after January 1, 2020, and before January 1, 2030, an LLC that is a small business solely owned by a deployed member of the United States Armed Forces shall not be subject to the annual tax if the owner is deployed during the taxable year and the LLC operates at a loss or ceases operation.

Instructions in Form 3522 gives more information. Click here Form 3522 . More FTB information here California Limited Liability Company Requirements 

I hope this answers your question. 

Best Regards

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

3 Replies
Esther M
Employee Tax Expert

LLC

Hi Ann46,

If you terminated your LLC in 2023, unfortunately you will still have to pay the $800 for the year 2023. It cannot be pro-rated.  You need to make sure you register your articles of dissolution with the Secretary of State and file your Final Return otherwise it is assumed that the LLC is still operating in California. Here's the information from the CA Franchise Tax Board.

Cancel your LLC

Registered with SOS

If you close your business, you must file the required paperwork with the Secretary of State and us.

With us you must:

  • File your final current year tax return. Check the applicable Final Return box on the first page of the return
  • Stop doing business in California after the final taxable year

Who Must Pay the Annual LLC Tax

Every LLC that is doing business in California or that has articles of organization accepted or a certificate of registration issued by the SOS is subject to the $800 annual LLC tax. The tax must be paid for each taxable year until a certificate of cancellation of registration or of articles of organization is filed with the SOS. Get FTB Pub. 1038, Guide to Dissolve, Surrender, or Cancel a California Business Entity, for more information. For taxable years beginning on or after January 1, 2003, an LLC as described in Internal Revenue Code Sections 501(c)(2) and 501(c)(25) and California Revenue and Taxation Code Sections 23701h and 23701x is exempt from the annual LLC tax. For taxable years beginning on or after January 1, 2020, and before January 1, 2030, an LLC that is a small business solely owned by a deployed member of the United States Armed Forces shall not be subject to the annual tax if the owner is deployed during the taxable year and the LLC operates at a loss or ceases operation.

Instructions in Form 3522 gives more information. Click here Form 3522 . More FTB information here California Limited Liability Company Requirements 

I hope this answers your question. 

Best Regards

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
DawnCo
Employee Tax Expert

LLC

Question already answered. Great Job!

Ann46
Returning Member

LLC

Would I need to pay for 2024 also I terminated and closed my registered agent this month of June would I still have to pay the 800 for 2024 and how would I fill this for the upcoming state tax for 2023?

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