Will a Limited Liability Company taxed as a S-corp have to pay the CA limited liability co fee that’s based on total income?

Incorporation 2 views 1 answers
We are converting to this structure and it looks like we’d be paying over $2,500 a year if this was true. I was told that if you change to S-corp you can avoid this fee and only pay based on your total profit? I do know that the limited liability co. would have to follow the ownership requirements of the S corp but I don't know what else applies. Thanks

Attorney Answer

1
Kevin Spainhour ·
I had this come up recently and what I found by reading the tax forms is that to calculate the income due you will deduct the cost of goods sold first. The tax forms have many deductions so it is really best to talk to a CPA about your tax situation and plan accordingly.
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