california
01-18-2014, 09:19 PM
I'm going to be forming an LLC this month, and the California franchise tax board site is a little confusing about when the annual tax + "fee" for a first-year LLC are due. (This LLC is a partnership, not a corporation.)
I managed to find this on another (non-government) site: "A domestic LLC has until the 15th day of the fourth month after filing its articles of organization with the Secretary of State to pay the first year annual tax." Which I'm taking to mean that if I file the articles of organization on 2/1/14, I have only until 6/1/14 to pay the annual franchise tax (the $800 minimum tax). So far so good (maybe)...
But what about the "LLC fee," which varies based on the company's income? I found these on the CA franchise tax board website and I'm having trouble interpreting what this means in my situation:
"An LLC required to file Form 568 pays an annual tax of $800, and may be subject to an LLC fee based on total income from all sources derived from or attributable to the state of California. The annual tax is due by the 15th day of the 4th month of the taxable year, and is paid using CA Form 3522, Limited Liability Company Tax Voucher."
It says when the TAX is due, but not when the variable FEE is due.
Maybe this is referring to the fee?... "If the Limited Liability Company is classified as a partnership or disregarded entity and files California Form 568, the following estimated tax guidelines apply:
Estimated LLC fee is due by the 15th day of the 6th month.
Members may have to make estimated tax payments for their own reporting purposes."
I can't tell if they're using "tax" and "fee" willy-nilly, but they are TWO DIFFERENT THINGS. I can't find anything specifically referring to the first year in business, for the "fee," only for the "tax." I seem to recall something about not paying the fee until the first calendar year is over, but now I can't seem to find that, so it may have been wishful thinking. Ugh. Trying to do a cash-flow projection and need to know this. Very hard to get through to the FTB on the phone...
I managed to find this on another (non-government) site: "A domestic LLC has until the 15th day of the fourth month after filing its articles of organization with the Secretary of State to pay the first year annual tax." Which I'm taking to mean that if I file the articles of organization on 2/1/14, I have only until 6/1/14 to pay the annual franchise tax (the $800 minimum tax). So far so good (maybe)...
But what about the "LLC fee," which varies based on the company's income? I found these on the CA franchise tax board website and I'm having trouble interpreting what this means in my situation:
"An LLC required to file Form 568 pays an annual tax of $800, and may be subject to an LLC fee based on total income from all sources derived from or attributable to the state of California. The annual tax is due by the 15th day of the 4th month of the taxable year, and is paid using CA Form 3522, Limited Liability Company Tax Voucher."
It says when the TAX is due, but not when the variable FEE is due.
Maybe this is referring to the fee?... "If the Limited Liability Company is classified as a partnership or disregarded entity and files California Form 568, the following estimated tax guidelines apply:
Estimated LLC fee is due by the 15th day of the 6th month.
Members may have to make estimated tax payments for their own reporting purposes."
I can't tell if they're using "tax" and "fee" willy-nilly, but they are TWO DIFFERENT THINGS. I can't find anything specifically referring to the first year in business, for the "fee," only for the "tax." I seem to recall something about not paying the fee until the first calendar year is over, but now I can't seem to find that, so it may have been wishful thinking. Ugh. Trying to do a cash-flow projection and need to know this. Very hard to get through to the FTB on the phone...