Form Ftb 3556 Llc Meo Bets Limited Liability Company Filing Information printable pdf download

STATE OF CALIFORNIA

FRANCHISE TAX BOARD

PO BOX 942857

SACRAMENTO CA 94257-0540

Limited Liability Company Filing Information

Limited Liability Companies (LLC) combine traditional

Due dates for first-year annual tax payment

corporate and partnership characteristics. The

Beverly-Killea Limited Liability Company Act of 1994 (Stats.

Domestic LLCs have until the 15 day of the 4

1994, Ch. 1200) authorizes the formation of LLCs in

month after filing their Articles with the SOS to pay

California. It also recognizes out-of-state LLCs doing

the first-year annual tax.

business in California.

Existing foreign LLCs that register or begin doing

General LLC Information

business in California after the 15 day of the 4

month of their taxable year must pay the annual tax

For information on how to register or organize an LLC in

either:

California, go to the Secretary of State (SOS) website at

sos.ca.gov or contact them by mail or phone at:

Immediately upon commencing business in

California.

SECRETARY OF STATE

Upon registering with SOS.

DOCUMENT FILING SUPPORT UNIT

PO BOX 944228

Avoidance of the annual tax payment is possible

SACRAMENTO CA 94244-2280

for domestic LLCs beginning January 1, 2005. The

LLC must meet all of the following conditions:

Telephone: 916.657.5448 (not toll-free)

It files a first-year return that is also its final

For tax purposes, California classifies an LLC as a

return.

partnership if it has more than one member. However, an

LLC may elect to classify as a corporation. If an LLC has a

It did not conduct business.

single member, California classifies it as disregarded and

It files a short form cancellation with the SOS.

treats it as sole proprietorship or a division of its owner,

unless it elects to classify as a corporation.

The annual tax is not refundable once paid, even if

the LLC meets the avoidance of the annual tax

LLCs must have the same classification for both California

payment requirements.

and federal tax purposes.

Annual Fee

LLCs classifed as partnerships generally determine their

California income, deductions, and credits under the

LLCs are also subject to an annual fee based

Personal Income Tax Law.

on their total income (R&TC Section 17942).

"Total income", for purposes of the LLC fee

LLCs classified as disregarded calculate their tax

means "...gross income, as defined in Section

separately from their owners, with the exception of certain

24271, plus the cost of goods sold that are paid

provisions relating to the LLC annual tax, annual fee, return

or incurred in connection with the trade or

filing requirement, and credit limitations.

business of the taxpayer."

LLCs classified as corporations generally determine their

Prior to January 1, 2007, the fee was computed

California income under the Corporation Tax Law. Refer to

FTB Publication 1063, California Corporation Tax Law, a

on "total income from all sources reportable to

Guide for Corporations, for these types of entities.

this state," which meant worldwide,

unapportioned income (R&TC Section

Annual Tax

17942(a)).

LLCs classified as partnerships or disregarded are subject

Effective January 1, 2007, LLCs calculate the annual

to an $800 annual tax. This provision applies if they are

fee on an apportioned basis based on "total income

doing business in California or the SOS accepts their

from all sources derived or attributable to this state."

Articles of Organization (LLC-1) (Articles) or Application for

LLCs determine "total income from all sources

Registration as a Foreign Limited Liability Company (LLC-5)

derived from or attributable to this state" by using the

(Application). LLCs orgnized or registered in California are

rules for sales assignment under Sections 25135 and

subject to the annual tax even if the LLC conducts no

25136 and the regulations thereunder, as modified by

business in California.

regulations under Section 25137, other than those

provisions that exclude receipts from the sales factor

An LLC is not subject to the annual tax if both of the

(R&TC Section 17942(b)(1)(B)).

following are true:

The annual fee is due on the original due date of

It did not conduct any business in California during

the return, which is the 15 day of the 4 month

the taxable year.

following the close of its taxable year.

The taxable year was 15 days or less.

The annual tax is due on the 15

day of the 4

month after the beginning of the taxable year.

FTB 3556 LLC MEO BETS (REV 07-2008) SIDE 1

Form Ftb 3556 Llc Meo Bets Limited Liability Company Filing Information

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