How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28082
Experience:  Taxes, Immigration, Labor Relations
870116
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

2014 we started a LLC in California. We are two owners and

Customer Question

2014 we started a LLC in California. We are two owners and last year our profit was -$2,000. In January we invested $45,000 of our own money into the company.
Based on this how should we estimate the tax? (form FTB 3536)
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
Hi and welcome to our site!As long as there is NO net business income - you will NOT have any additional tax liability resulted from LLC activity.
Expert:  Lev replied 1 year ago.
However - there will be still minimum franchise fee $800 - that are due from the LLC. LLCs classified as disregarded entities or as partnerships are subject to an $800 annual tax.Domestic LLCs have until the 15th day of the 4th month after they file their Articles of Organization with the SOS to pay the first-year annual tax. For the LLC's first year, this is measured from the date the business files its Articles of Organization.
Customer: replied 1 year ago.
Thanks for your reply Lev.So as long as there is NO net business income I do not have to file form3536? Once we start having a net business income I will file form 3536 quarterly?
Expert:  Lev replied 1 year ago.
You are correct - you may avoid quarterly estimate payment - and pay the full amount - which will be $800 in your case.
If that is your first payment - the due date to pay the first-year annual tax - is the 15th day of the 4th month after the LLC filed the Articles of Organization with the SOS.
You may choose to pay the full amount OR or make estimated quarterly payments.
See following publicatyion for details
https://www.ftb.ca.gov/forms/misc/3556.pdf
page 2 -