It is a first for me, I know about the $800 = tax, the FEE is that calculated on California gross or total gross. I know for non single members it has always been CA, but I am getting a strange number (my input) because 568 is using Total Receipts..
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California SMLLC - Form 568
You need to complete Schedule IW (CA Form 568) which will add gross profit and cost of goods sold.
Basically that results in you reporting "total receipts" on CA Form 568 and calculate California LLC
fee based on that. There is no fee below $250000. But you calculate fee for 250000 and above,
based on fixed $$ amount for different slabs.
Initially I was thinking I was not doing right. But when I read instructions and worked with the
Schedule, I realized that the fee is based on "total annual income (receipts)" and not on "net profit". -
NSNM has it right
CA minimum franchise fee is $800/YR (after year one) regardless of net gain/loss. SMLLC gross receipts tax kicks in after $250,000. Welcome to California. We need the money. Please encourage your clients to continue forming this type of entity.Comment
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Thanks
guys, I had a hard attack, but Ultra tax did not do the workasheet - I had to put the % in and all is well. There is a fee if the CA gross is over $250,000 I believe, and it goes up from there.Comment
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