Question in regards to LLC in the state of California

· · 0 views
In 2008, through the advice of a friend, I created a LLC. After a few years, I decided to dissolve the LLC because i never used it in any ways. Recently, the state sent a statement saying we owe the state 4k. ($800 per year for 5 years for using a LLC). In previous years, the state never mention we owe any money. All of a sudden, after 5 years, the state sends a statement that we owe them 5k? Plus late fees. After finding out, I cancelled the LLC. It was one of those things, I created, never used and had forgotten about it. Question is, what's the best way to dispute this? Since I never listed any assets under this LLC, there is nothing the state can liquidate to cover the fees? How can I check, if I listed any assets under this LLC? Thx in advance.

3 Attorney Answers

There is no need to dispute this if you have not paid it yet. Whether the LLC had any assets is not relevant. The obligation to pay the $800 per year is the obligation of the LLC, not the personal obligation of its individual members. If you formally dissolve the LLC, you will need to pay the back taxes. However, you can just let the LLC get suspended by the FTB.
Unless you plan on doing business under this LLC in the future, there is no need to take any action as the taxes are owed by the LLC only, not you personally.
In California, an LLC must pay a $800 franchise fee per year for the privilege of doing business in California, whether or not it has any activity or income. Yeah, thanks California. To fully dissolve the LLC, you'll have to pay up... all of it. You can choose to do nothing, but you'll still get nasty letters and maybe phone calls from the Franchise Tax Board. I would add that an LLC is required to file a tax return every year in California.

Sign in to answer this question.

Sign In or Sign Up as an Attorney