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Can I abandon an LLC that's FTB suspended?
Anonymous4 views3 answers
I have an LLC that was established in 2009. All tax returns were filed with income flowing into Sch C as sole proprietor. I never received notification to pay the annual $800 fee. As such, all years were delinquent. Recently, the FTB sent a suspension letter. Can I abandon the LLC without consequence?
Rex Wenstrom HalversonTax LawyerSacramento, CACA licensed ·
The $800 LLC minimum tax is not a personal liability. Even the FTB admits on its website that "In general, all the owners (members) are shielded from individual liability for debts and obligations of the LLC."
So, the FTB will send you countless notices that the LLC must pay the $800 LLC minimum tax, but in fact you are not personally liable for same and can ignore the notices. However, there are some exceptions and for that reason, you should talk to a state and local tax attorney for advice. Good luck!
I agree with Mr. Halverson's answer. I would add that if you had any employees, you'll want to file final employment tax returns with the IRS and the EDD. Otherwise, you could be personally liable for employment taxes in a trust fund penalty.
