How do I avoid California Franchise Tax?
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How do I avoid California Franchise Tax?
To avoid back-to-back California Franchise Tax payments, you can hold off on forming your business until January or include a “future file date” on your articles of organization or incorporation when you file.
Who pays CA Franchise Tax?
Every corporation that is incorporated, registered, or doing business in California must pay the $800 minimum franchise tax.
What happens if you don’t pay LLC tax?
When you do not pay your minimum LLC tax of $800 the FTB will charge you a penalty. Eventually, if you do not pay the tax your LLC will be suspended. The FTB will continue to charge you the $800 fee until the LLC is dissolved.
How do I reactivate a dissolved company?
If your corporation was involuntarily dissolved because of an administrative oversight, your state’s laws may allow you to “cure” the deficiency within a specified time period by filing certain documents with the secretary of state’s office and paying fees to reactivate the company.
How long does it take to restore a dissolved company?
Once you have sent off the paperwork and any monies owed, the process should be straightforward and you should have a decision within 2 weeks; Companies House will inform you of the decision. If the application was successful then your company should be restored to the register.
How do you declare a company dormant?
If you want to make an active company dormant, you’ll have to contact HMRC (preferably in writing) who will issue you with a notice for a company tax return. You’ll have to file the return and pay any tax liable on profits made before the company became dormant.
Do dormant companies need to file tax returns?
If your company remains dormant for any length of time, you have to inform HMRC that you’ll no longer be trading. You don’t need to pay Corporation Tax or file another Company Tax Return. You should meet the accounting and filing obligations to complete the annual tax returns even if you have no tax liabilities.
Do dormant companies have to file annual returns?
You must still file annual accounts and a confirmation statement (previously annual return) – exactly what you must do depends on if you’re dormant for Companies House. Find out how to restart your company.
