A two member LLC paid the 2019 CA min tax ($ 800). Subsequently, one member died in 2019. The multi member LLC now becomes a single member LLC. Does the single member LLC have to also pay $ 800 for tax year 2019? Or is the $ 800 paid by the multi member LLC also good for the single member LLC for 2019?
It depends on who the beneficiary to the deceased owner. If it is the other member, you must file another return and pay the $800 twice. If it was someone else, the estate or beneficiary becomes the other member and it’s still a multi member LLC. In that case, you can arrange to acquire the other owner’s interest on 12/31/19 and just make the change then
The surviving spouse inherits from his deceased spouse. The decedent’s estate will not be settled until well into next year. Does this mean the decedent spouse’s estate becomes the successor member so that there isn’t a single member LLC?
I would say that if the LLC interest is part of the probate estate, the owner is the estate. If it was in a living trust, the interest goes to the surviving spouse. That’s my opinion. If you want you could use the FTB’s Ask the Experts on their website for an opinion.