Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

What happens if we never paid any amount to maintain the corporation?

what should I do now...
What happens if we never paid any amount to maintain the corporation? what should I do now? how much do I need to pay and to where?
Show More
Show Less
Ask Your Own Tax Question
Answered in 16 minutes by:
9/2/2013
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 13,007
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

NPVAdvisor :

Hi, can you tell me what state you're in? Corporation and business entity law is a state law (secretary of state) issue

NPVAdvisor :

From a legal perspective a corporation lives forever (as a separate entity) until and unless it's dissolved

NPVAdvisor :

And each state will have it's own rules for that (usually a filing of articles of dissoluton, at the least)

NPVAdvisor :

Each state will have it's opwn rules about annual filing fees as well

NPVAdvisor :

Let me know what state you're in, if you would, and we can go from there...

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 13,007
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified
Lane and 87 other Tax Specialists are ready to help you
Ask your own question now


Hi,

... just checking back in, as I never saw you come int the chat.

Let me know more detail and I can get some answers for you.

(1) What kind of corporation (s-Corp, C-Corp, the the quasi corporation, LLC)

and (2) what state?


Let me know,

Lane


Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 13,007
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified
Lane and 87 other Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 4 years ago


i'm in California. its a S corp.


i'm filing for 2012 and there has been no income or expenses for 2012. but we also never paid any fees for the corporation besides when we opened it in 2012.


Here ya go,

If there was no income, then you'll only be liable for the minimum $800 per year amount.

See this from the Ca Franchise Tax Board:

S corporations that are corporations, or LLCs under civil law corporations must pay the annual $800 minimum franchise tax.

From here: https://www.ftb.ca.gov/businesses/bus_structures/sCorp.shtml

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 13,007
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified
Lane and 87 other Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 4 years ago


Ok so I guess I never paid the $800 for 2012.


1. I heard for the first year the corporation was opened I did not have to pay the $800. correct or false?


2. now that I did not pay what should I do? do I pay it now and where do I record it both on federal form and state?


Thanks



You are correct IF the company as a loss.

See This:

These corporations compute their tax by multiplying their net income for the year by 1.5%. (See Example 2 below)

Example 1 - First year loss:
Beta Corporation incorporates on February 21, 2000, and pays only the Secretary of State filing fee. Beta selects a calendar year end and when it files its first return for the short income year of February 21 to December 31, it shows that the corporation operated at a $3,000 loss. Because Beta is a new corporation, it is not subject to the minimum franchise tax for its first tax return.


Look a little less than 1/2 way down the page here: http://www.taxes.ca.gov/corpS.shtml
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 13,007
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified
Lane and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask Lane Your Own Question
Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 13,007
13,007 Satisfied Customers
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

Lane is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,336 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,906 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
I failed to file a "Franchise Tax Report in Texas and
I failed to file a "Franchise Tax Report in Texas and received a Texas Notice of Forfeiture of Right to Transact Business". I went online to try and resolve this but it is extremely confusing as to wh… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,610 satisfied customers
Penalty for late filing of partnership LLC tax return, not
Penalty for late filing of partnership LLC tax return, not eligible for Rev Proc 84-35 relief because one of the partners is a foriegner… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,610 satisfied customers
I received a letter from California franchise tax board
i received a letter from California franchise tax board today for state taxes from years 1996 and 1997. Am I still obilgated to pay that debt. … read more
abci168
abci168
Principal
27 satisfied customers
Is income from an LLC passed through to personal tax return
Is income from an LLC passed through to personal tax return considered earned income, enabling me to contribute to a traditional IRA?… read more
abci168
abci168
Principal
27 satisfied customers
How is the California state income tax calculated? I have
How is the California state income tax calculated? I have approximately $55,000 of income before deductions. I am married filing jointly.… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,252 satisfied customers
EFLA question - net income from EFLA partnership was
EFLA question - net income from EFLA partnership was reported on Line K-1, Line 11 as $50,000 and is made up of interest, cap gains, section 988, expenses, etc. Of that amount, $30,000 is recharacteri… read more
Carter McBride
Carter McBride
LLM
98 satisfied customers
Can the California state franchise tax board put a lien on
can the California state franchise tax board put a lien on social security ? … read more
abci168
abci168
Principal
27 satisfied customers
Regarding Federal tax income Form 4952, should I expect my
Regarding Federal tax income Form 4952, should I expect my client to provide me a form to help me fill out line 1 for "investment interest expense paid"? And if so what is the form number?… read more
abci168
abci168
Principal
27 satisfied customers
Tax Question: Non-Resident Withholding Tax, Franchise Tax
Tax Question: Non-Resident Withholding Tax, Franchise Tax Board, CA HISTORY: 1. The property is in California 2. The owner resides in outside of California 3. Metro Property Management collects monthl… read more
abci168
abci168
Principal
27 satisfied customers
Is there a retail inventory tax for the state of California?
Is there a retail inventory tax for the state of California and how does it differ from other states? Is it just a federal tax or is there no tax?… read more
DanielleCPA
DanielleCPA
Certified Public Accountant
Bachelor's Degree
76 satisfied customers
What is a franchise tax. What is franchise tax and it taxed
Is there anything else the Accountant should be aware of?Customer: the home sold was inherented… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
882 satisfied customers
Does the california franchise tax board have any current or
does the california franchise tax board have any current or upcoming amnesty programs for limited liability companies … read more
abci168
abci168
Principal
27 satisfied customers
The CA franchise tax board call yesterday stating that I
The CA franchise tax board call yesterday stating that I didn't file my 2001 540 returns. I have been on a garnish plan with them since about 2014. I can't find that years forms. What can I do? … read more
abci168
abci168
Principal
27 satisfied customers
What is the ruling to use for a LLC not want to file a late
what is the ruling to use for a LLC not want to file a late S election for 2016. the LLC does not file an extension for the S corp.… read more
Lane
Lane
JD, CFP, MBA, CRPS
13,007 satisfied customers
I sent my out of state California excise franchise tax work
I sent my out of state California excise franchise tax work in but it never arrived … read more
James Daloisio
James Daloisio
Attorney
Doctoral Degree
71 satisfied customers
I started a California LLC in 2012, I have not filed a tax
I started a California LLC in 2012, I have not filed a tax return, didn't know I had to, and didn't pay an annual fee. I have only had a few thousand dollars in business, nothing the last two years. I… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,610 satisfied customers
Income from federal return incorrectly transferred to state
income from federal return incorrectly transferred to state return … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,610 satisfied customers
I was trying to file a delaware franchise tax return +
i was trying to file a delaware franchise tax return + annual report and I saw that the person filing the report does not have to provide any kind of authentication at the time of filing. Is this corr… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x