California LLC taxes explained

[Simon Stahl]

Hi

I have formed an LLC in California. I did this because I will need an LLC to be able to get a loan from my HM lender. Filing date was July 14th 2016, but so far I have not done anything with it. I am the only member, so it is a disregarded single member LLC. When exactly do I have to pay what taxes or fill out what forms?

I just got a letter from the California Franchise Tax Board stating that I have to

1. Pay $800 annual tax by the 15th day of the 4th month - I think I am already too late for this? Should I have payed this before Oct 15th?
2. Estimate and pay the annual fee - Since I have not done anything with my LLC yet, I think I don't have to do this?
3. File form 568 - Do I have to do this even though it is a disregarded single member LLC?

When exactly do I have to do what in the first year and the following years? If I am already too late for the $800 annual tax, are they going to fine me if I pay that now?

Sorry, this might seem very basic questions. I just feel a bit overwhelmed with this official government english...

Thanks Simon

[Logan Allec]

Hi @Simon Stahl, I am a California CPA specializing in real estate and have handled the tax filings for hundreds of CA single-member LLCs for real estate investors.  I have answered your questions below.

1. Pay $800 annual tax by the 15th day of the 4th month - I think I am already too late for this? Should I have payed this before Oct 15th?  Yes, you should have, and you should pay it immediately.  You can either use  or 
2. Estimate and pay the annual fee - Since I have not done anything with my LLC yet, I think I don't have to do this? That is correct. The LLC only has to pay the annual fee when it hits $250,000 of California gross receipts.
3. File form 568 - Do I have to do this even though it is a disregarded single member LLC  Yes, you do. Your Form 568 for the period 7/14/16 - 12/31/16 will be due April 17, 2017. However, because this is a single-member LLC, not every page of the Form 568 has to be completed (there are some exceptions to this rule, but based on your LLC's level of activity, they do not apply to your LLC).

Feel free to connect and private message me with any further questions you may have.