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Can you provide me a bit more information? Did you actually file formation documents with the CA Secretary of State for your LLC? When you opened this account, did the bank require any documentation evidencing the formation of the LLC or your authority? How have you been filing tax returns for the entity? Thanks.
Can you attach a copy of this document they want you to sign?
Thanks for following up. Signing the form the bank wants you to sign is not really the problem. The problem that you have is the annual CA tax of $800. Since you registered the LLC with the CA Secretary of State and never formally dissolved it, the state can hold you responsible for this annual tax since the inception of the LLC. The tax applies whether or not the LLC has any activity or makes any profit. (http://www.incorporatecalifornia.com/callctax.html). But, that has no applicability to the situation with the bank. The form the bank likely wants you to sign is a document that is going to provide assurance to the bank, probably through a personal guarantee and affidavits contained in the form, so the bank can be sure it has you and your husband personally liable for any debt incurred. Whatever the bank needs you should probably sign unless you don't need the credit cards and line of credit.
This is the part of my job I don't like...when the law is not in favor of my customer. I wish I could tell you there was no possible issue regarding the annual taxes, but, I can only provide you information based on the law so that you can act on the best available information to you. ………..I wish I had better news, but can only hope you recognize and understand my predicament and don't shoot the messenger. I'm sorry!
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