LLC Short Form Calcellation-tax return - Spidell

LLC Short Form Calcellation-tax return

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Message Board LLC Short Form Calcellation-tax return

This topic contains 3 replies, has 3 voices, and was last updated by Tatyana Shevnina 2 weeks, 1 day ago.

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  • #179125
    Anonymous

    An LLC was formed in early 2018 and since it did no business, it was cancelled with the secretary of state using the short form (LLC-4/8) by the end of the year.  The $800 tax was never paid.

    Is a tax return still required in this case (given that not business was done)?  One of the conditions of short form cancellation is that the final tax return was (or will be) filed.

    If that’s the case, it sounds like we need to file a “0” return for the LLC and show “0” LLC tax on that return?

    Thanks

  • #179174
    Tatyana Shevnina
    Participant

    Tax return is still required and I was going to say that $800 tax still applies, but then saw the following on the FTB website
    <h4>Short form cancellation</h4>
    If you cancel your LLC within one year of organizing, you can file Short form cancellation (SOS Form LLC-4/8) with the SOS. Your LLC will not be subject to the annual $800 tax for its first tax year.

     

    If you check out the FTB website link, this short form paragraph is in the same section as the last 15 days of the year exception. It’s not quite clear if in addition to filing LLC-4/8, the company still had to be formed in the last 15 days of the year.

    If this exception doesn’t apply, maybe they can qualify for voluntary administrative dissolution.  Here’s a link on FTB website

    Hope this helps. I’m myself curious to know a definitive answer.

  • #179217
    Larry Pon
    Participant

    <span>https://www.ftb.ca.gov/help/business/administrative-dissolution-cancelation.html</span&gt;

    Here’s the link to the FTB page for the Administrative dissolution.

    For LLCs, you file Form 3716.

     

  • #179273
    Tatyana Shevnina
    Participant

    The only thing is that Form 3716 is for LLCs that were registered with the SOS for over 12 months. This LLC was registered less than 12 months. Spidell’s CA Minute on administrative dissolution mentioned that administrative dissolution is available to LLCs registered for less than 12 months.

    I would try to call FTB to clarify if filing LLC-4/8 means no $800 tax.  If tax still applies, clarify the process for administrative dissolution for LLCs registered with the SOS for less than 12 months.