What You Need To Know About California LLC Due Dates, Tax Returns and Dissolution

What You Need To Know About California LLC Due Dates, Tax Returns and Dissolution

We received this contribution from our friend Mark Cummins, CPA (http://markcumminscpa.com/), and gladly publish it with his permission. It’s a recap of a phone conversation he had with the Franchise Tax Board a while back. He called to clear the air about due dates for LLCs:

When Is the Due Date for a Limited Liability Company?

LLCs have to pay the famous (infamous someone will say) $800 by the 15th day after the 4th month of incorporation. The month of incorporation counts as month number 1. Therefore, for example, an LLC incorporated in July owes the $800 by October 15th of that same year. The following year and each year thereafter the $800 are due by April 15th (note that corporations are due by March 15th, not April 15th as a lot of people incorrectly assume).

When Are Tax Returns Due For A LLC?

Your CPA should fill out a CA 568 form and determine what entity to file under and file a Schedule C, 1065, 1120, or 1120S as appropriate. LLC tax returns are due March 15 or April 15 for Federal purposes depending on the entity selection, while CA 568 is due April 15 of each year (this is more for the initiated I guess).

How do I dissolve an LLC?

You can dissolve an LLC within 12 months of incorporation and not having to pay the $800 to the State Franchise Tax Board as long as the Secretary of State files the proper cancellation forms before a full year has passed from incorporation. You are still required to file a Final Year 568 form with the State Franchise Tax Board and check the box Final Year Return to eliminate the annual filing requirement and close the corporation from a Franchise Tax Board’s point of view.

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The information contained in this blog – including information of a legal nature – is provided for informational purposes only, and should not be construed as legal advice on any subject matter.

For more information see FTB Publication 1038 at www.ftb.ca.gov

You can find Mark at http://markcumminscpa.com/