California LLC Franchise Tax Due: Don't Get Hit with Penalties!
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- Опубліковано 25 сер 2024
- Are you a California LLC owner? Confused about when your annual franchise tax is due? Don't worry, you're not alone! In this video, Attorney Dan breaks down everything you need to know about the California LLC franchise tax, including:
• Key Deadlines: Learn the two critical dates you need to remember to avoid penalties.
• First-Year Exemption: Discover if you qualify for the first-year tax exemption (applies to LLCs formed between now and December 31, 2023).
• Easy Payment Options: Get tips on how to pay your franchise tax online quickly and easily.
• Avoid Costly Mistakes: Watch this video to ensure you're compliant and avoid unnecessary fees.
Click here to learn more about California LLCs:
• CALIFORNIA LLC Owners:...
www.ftb.ca.gov...
#legaltipsforsmartentrepreneurs #llc #franchise
Disclaimer: All information on this channel should be considered informational only and not legal advice. Please consult a lawyer for your specific situation.
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Please do a video showing how to create an FTB account for an LLC? 🙏
I have an LLC. Is the Entity ID the same as EIN? I haven’t created an FTB account so EIN isn’t working as an entity ID when trying to pay the annual fee.
No your entity ID number is the number issued to you by the California secretary of state. It will be on your articles of organization or on the secretary if state website under your LLC name. Your EIN is your employer identification number issued by the IRS. The EIN entity number are 2 different numbers.
So my Cali LLC was set up on July of 2023 so I won't have to pay fir 2023. But in 2024 my 800 fee is due on 4/15/24, correct?
@kevinmartinez8109 I created a video that goes over the timeline for franchise tax payments for newly formed LLCs in California. You can watch the video here:
ua-cam.com/video/PGc73fah2kA/v-deo.htmlsi=3yZKLqu92ljRQ799
Dan I formed my LLC on August 2022 do I have to pay the 800 this year or until 2024
This year for 2023, and next year for 2024, etc, etc.
i formed mine 4/29/21 so that means i d not have to pay until 2023? thanks
No,you have to pay for 2022 and 2023.
Hello Dan. I formed an SMLLC on April 7 2022. I haven't paid any FTB $800 fees, do I pay the first fiscal year in April 15th 2023? I have not started doing business, yet does 2022 count as my first? Thanks for the great videos!
Since you formed before Dec 31, 2023, then you get the first year (April - Dec 2022) for free. You have to pay for 2023, 4 months and 15 days after end of fiscal year (usually April 15 is due date for most LLCs).
www.ftb.ca.gov/file/when-to-file/due-dates-business.html#:~:text=Annual%20tax-,Your%20annual%20tax%20amount%20is%20%24800.,figure%20out%20your%20due%20date.
Does the "4 months and 15 days" rule apply to S Corp as well?
Yes.
hey dan if i formed my llc in 10/22 of last year when would i pay the annual tax fee ?? thank you so much for the response
Assuming you are on calendar tax year, on or before April 15, 2023, and every year thereafter.
@@LegalTipsForSmartEntrepreneurs
i just paid for 1- 1-23 - 12- 31-23 would that be correct ??
@@LegalTipsForSmartEntrepreneurs thank you for your time and response
If you are paying for 2023, yes.
Hi llc formed in June 2021 but they asked me to pay the $800 in September, did i miss any thing here ? Thanks.
You might want to call the CA FTB and ask them why you owe. It might be that you owe for 2022.
Hi! This more for the Form 568 Tax Return. So the Form 568 is due today, 04/15/2023. I submitted it today at 5:14 PM through Fedex overnight. It’s still considered filing on time, right? Thank you kindly for your response.
You may want to confirm, but I believe it is timely because April 15 falls on a weekend, and usually when that happens for taxes is the due date is the next business day.
Dan, by any chance do you offer help forming an operating agreement?
Hi Raul yes we do help drafting operating agreements.
@@LegalTipsForSmartEntrepreneurs how do I contact you?
@@raulvargas-ramos5529 you can go to www.isdanlegit.com and click on the link to book an appointment towards the middle of the page.
I started my LLC 12/17/21, is 2021 waived for me or 2022?
Depends if you did any transactions between 12/17/21 and 12/31/21
The 15 Day Rule for CA LLCs basically if you did no transactions in 15 days or less of the short tax year, you don't ow the franchise tax until the next taxable year.
See this: www.ftb.ca.gov/about-ftb/newsroom/tax-news/december-2019/what-is-the-15-day-rule.html
Hello Dan! I started my LLC on 11/20/2022. Do I qualify for the waiver?
When would I pay the annual franchise tax fee?
Looks like you qualify for waiver because you filed before Dec 31, 2023. So you get your first year, 2022, free, and you pay for 2024 on or before April 15, 2024, assuming you have a calendar tax year.
I formed the LLC in March 2021 and as for first year, we dont have to Franchise Tax of $800. So, I was due on April 15th, 2022 the annual Franchise tax of $800, But i missed that, so need to know how would I know how much additional amount i need to pay with $800 now if there is any penalty or interest after due date
You need to call then and ask how much the payoff amount is.
Hello, I formed a LLC April 21, 2021. Was I suppose to pay my LLC in Aug 2021? I paid for year 2021 and year 2022, this year on April 06, 2022.
Normally yes, but through 2023 thr first year is free www.ftb.ca.gov/file/business/types/limited-liability-company/index.html#:~:text=For%20tax%20years%20beginning%20on,for%20their%20first%20tax%20year..
Hi Dan,
If I formed my LLC 1/24 of this year. When would I pay the annual franchise tax fee?
Assuming you are in a calendar year tax basis, you get a free first year under AB85, so you would pay next year on or before April 15.
@@LegalTipsForSmartEntrepreneurs do we need to submit any forms or it’s automatic and we just wait till April 15, 2024?
@@Wainz007 you can pay online. You may also have to use Form 568 for other LLC fees. It's not automatic.
Hi! Let's say the LLC was formed Nov 2021, since the fee is waived for the first year and the LLC was formed at the end of 2021, would this mean the fee should be paid April 15 2023?
If you formed in November 2021 i believe that you have to pay in April or March 2022 because your first year free seems to be 2021.
If you formed on or after December 17, 2021, and did no business, you first year free might be 2022 and then you don't have to pay until 2023.
You might want to ask FTB just to be sure.
I registered for my LLC on Jan 1st 2022, so my first year is free right? It is now January 2023, so for the year 2023, do I have to pay the annual $800 fee before or on April 15th. 2023?
Yes, assuming you fall under calendar taxable year. www.ftb.ca.gov/file/business/types/limited-liability-company/index.html
Do I need to fill out an exemption form or something to not pay the tax the 1st year
And does this work for both taxes needed to be paid...I just got my llc so 800 is due on the 15th of this month and next month for annual...which one would I need to pay
@@MrJonwayne357 first year exemption should be automatic, but you might want to check with ftb to make sure.
@@MrJonwayne357 your second question is unclear to me. Please re-phrase.
I made a mistake for my due date year. I'd meant to put in jan 04, 2023 to December 2024. I'd paid it already. But I'm waiting for confirmation. Is there a way to correct this with getting charged twice? My previous year 2022 was free. But this year 800 bucks is due.
you might have to start an online chat or call the FTB to resolve the issue.
@@LegalTipsForSmartEntrepreneurs thanks for replying. I resolved it. The payment was voided.
Thats great hear it.
Hey Dan, I recently converted my LLC from NJ to California 4/4/23 do I qualify for the waiver or should I pay my annual LLC Franchise tax today? Thanks in advance.
I suspect you don't get the waiver because it is a conversion not a natively formed LLC.