California secretary of state form llc48 [Expert Approved]

Last updated : Sept 19, 2022
Written by : Jay Tumolo
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California secretary of state form llc48

Do you have to pay the $800 California LLC fee the first year?

Every LLC that is doing business or organized in California must pay an annual tax of $800. This yearly tax will be due, even if you are not conducting business, until you cancel your LLC. You have until the 15th day of the 4th month from the date you file with the SOS to pay your first-year annual tax.

What is the difference between LLC dissolution and cancellation?

Dissolution, also called winding up, is a process that members of an LLC will go through in preparation to cancel with the secretary of state and terminate the existence of the LLC. Cancellation is on the secretary of state's side, which terminates the rights, privileges, and powers of an LLC.

What is form llc1?

A California LLC is created by filing Articles of Organization, Form LLC-1, with the California Secretary of State's office. The articles must include the LLC's name, its purpose, information on how it will be managed, its address, and the name and address of its registered agent.

What documents are needed for a California LLC?

Creating your LLC in California requires two separate filings: Articles of Incorporation, and a Statement of Information. Your Articles of Incorporation form your business in California and the Statement of Information is a periodic filing first required within 90 days of formation.

How do I avoid LLC tax in California?

Can I avoid the California Franchise Tax? There's no way for a registered business to legitimately avoid the California Franchise Tax. Sole proprietors and general partnerships don't have to pay the California Franchise Tax, but they also don't have any personal liability protection.

How much is the annual fee for LLC in California?

Every LLC registered to do business in the state of California must pay an $800 annual fee called the Franchise Tax Board Fee or Franchise Tax. This acts as a minimum franchise tax for your company, so the fee applies as long as your LLC exists, even if it's inactive or operating at a loss.

How do I close my LLC in California?

  1. File all delinquent tax returns and pay all tax balances, including any penalties, fees, and interest.
  2. File the final/current year tax return.
  3. Cease doing or transacting business in California after the final taxable year.

When should I dissolve my LLC?

Dissolution generally occurs when the business purpose of the LLC is completed or ceases to be economically viable. The members may also agree to dissolve the LLC if they are at an impasse regarding fundamental decisions concerning the LLC's business operations.

What happens when a partner leaves an LLC?

Once a member withdraws (or dissociates) from the LLC, the LLC remains in business and does not dissolve. A dissociated member continues to hold an economic interest in the LLC for the same ownership interest percentage as their former membership interest.

What is the difference between LLC 1 and LLC 12?

Form LLC-12, Statement of Information, is used in the State of California by LLCs after they complete form LLC-1. After the LLC-1 is filed, the business has 90 days to file their first LLC-12. After that, this form must be resubmitted every two years.

How long does it take to form an LLC in California?

You can form an LLC in California in 3-5 days if you file online (or 2-3 weeks if you file by mail).

Where do I file for an LLC in California?

To form an LLC in California, go to, log in, select Register a Business under the Business Entities Tile, Articles of Organization - CA LLC and follow the prompts to complete and submit.

Does an LLC need an EIN in California?

It is essentially a Social Security Number for businesses. An EIN is obtained by filing the Form SS-4 with the IRS, which can be done online. While most businesses will need an EIN, not every California LLC or corporation does.

Does an LLC need a business license in California?

LLCs, Corporations, LPs, LLPs, or GPs operating in California need to register and form their legal entity with the California Secretary of State's Office, file appropriate taxes, register as an employer, and obtain business licenses and other permits from appropriate cities or counties.

Does a California single member LLC need an EIN?

An LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below. Most new single-member LLCs classified as disregarded entities will need to obtain an EIN.

Should I pay myself a salary from my LLC?

Do I need to pay myself a salary? If you're a single-member LLC, you simply take a draw or distribution. There's no need to pay yourself as an employee. If you're a part of a multi-member LLC, you can also pay yourself by taking a draw as long as your LLC is a partnership.

Why are California LLC fees so high?

Every business pays the $800 annual franchise tax, which is applied to taxes owed, but LLCs are the only ones subject to California Gross Receipts tax. This is one of the biggest reasons why a California LLC is so expensive.

Can I file my LLC and personal taxes separate?

Single member LLCs classified as disregarded entities generally do not report their own income separately from their owners. However, they are treated as separate entities for purposes of the annual tax, LLC fee, tax return requirements, and credit limitations.

How do I pay the $800 franchise tax?

The state requires corporations to pay either $800 or the corporation's net income multiplied by its applicable corporate tax rate, whichever is larger. You may pay the tax online, by mail, or in person at the California Franchise Tax Board Field Offices.

Do I need to file Form 568 if no income?

You may not file form 568. if the business didn't have any income and expenses. Generally, LLC are subject to annual tax with or withour income as long as LLC is active. Depending on the state of incorporation, LLC is exempted to an annual tax during the first year of operation or taxable year was 15 days or less.

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California secretary of state form llc48

Comment by Ryann Sasse

Thanks for this great article

Thanks for your comment Ryann Sasse, have a nice day.
- Jay Tumolo, Staff Member

Comment by Jackeline

what happens if your company is secretary of state suspended hi my name is dan nguyen and i'm a business attorney here in orange county california and today i want to talk about the situation where your company is secretary of state or sos suspended and how to get out of it so on this page here i'm going to share with you what it exactly means to be sos suspended or forfeited so and i've shared this link in the description below if you want to learn more but usually what this means is um it has been it's failed to file a statement information for corporations and llcs now for llc's these are required to be filed every other year on the anniverse before the anniversary of your registration or every year for corporations okay so mark on your calendar if you have llc a corporation when did you form your corporation or llc and then for corporations marked down in your calendar that you have to file a statement information every year and then for llc's you have to file every other year you do also have to file these when you change management or addresses so in between those times those required times you also have to file one but typically when you are suspended it's because you didn't file these on the required dates either annually or bi-annually so good thing what is um um uh well real quick though um if you are suspended or forfeited um then there's some other issues here with the victims of corporate fraud compensation um and so what the good thing here is though is that this is really easily remedied so what you want to do is go to the california secretary of state website and so i'll just kind of go to um to here and we're going to click on business what you want to do is file your statement of information online so if your llc click this one if you're a corporation click number three so just for example here we'll do llc's and what you want to do is enter your entity number or llc name so i'm just i'm just going to pick one just for an example okay and there's a couple here and so you're just going to pick the one that's that's yours now if you put in your entity name then obviously it'll pick up the the exact one so would you go ahead and just pick up the uh entertaining i'm just gonna um pick one that's llc's uh sos suspended and you know if this is yours this is the this is the last uh information to have on file make sure you continue filing read all is connected to you put the address here um they're gonna ask for your managers um type of business and registered agent and so um make sure you have that information handy so what you can do is actually just look for the llc form 12 which is the statement information you want to prep all this information um then you can just fill up this form first because this is going to ask what the what the online form is going to ask you um you know your 12 digit number your principal address your mailing address of different your street address of different okay no po boxes managers and members okay service of process here corporation if it's a corporate type of business ceo if it's appointed and labor judgment you can fill all these out first if you want and and then just enter it in here and pay it so very similar process for a corporation if not exact your form is going to be different just look up i think it's uh soi uh 12 no that's why i won but just maybe look up california secretary corporate corporation statement of information pdf and it should bring you something like this and you can just prepare um prepare it uh similarly so uh and this should get you out of secretary of state suspension and it's usually pretty quick they're processing the processing these days using a couple days and so um depending on where they are in the month obviously but it usually just takes a couple of days so hey this is dan talking about sos suspension and how to get out of sos suspension alright this is dan talk soon bye

Thanks Jackeline your participation is very much appreciated
- Jay Tumolo

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