What Are The New Llc Rules In Ca

Which state should I file an LLC under: CA or PA?

The most direct answer is, it depends. The first thing you should consider is where your company is actually located and where its principal place of business will be. From a practical standpoint, it may be easier to file under your own state. However, there are tactical considerations for filing in other states as well. The most popular state is usually Delaware due to the structure of their corporate regulations. Most companies that choose a different state from where they are located to file do so for particular reasons that benefit their company. Your best bet to figure this out is to consult a lawyer. Finding a lawyer that is business savvy and has experience in these types of legal matters can make your decision much easier. Despite this being somewhat inconvenient, your company could avoid unnecessary expenses and litigation, and limit overhead simply by just speaking with the right lawyer.  Finding a lawyer at the right price with the experience you need can be challenging. You should take a look at our company LawTrades for a top notch attorney to complete your LLC formation. Legal advice can be so helpful in so many situations, but typically people will shy away because finding a lawyer can be tedious and time consuming. Our company gives you a platform to quickly and efficiently find the right lawyer. Aside from consulting a lawyer, there are some things you should consider before filing under a particular state. Filing an LLC is a relatively simple process and does not necessarily require a lawyer. However, each state has different rules regarding what must be done to properly file an LLC. So you probably want to speak with a lawyer about what are the full requirements necessary. Also, when setting up your corporate structure when you file, many states will have varying interpretations of this process, so you want to make sure you are also complying with these regulations.  Overall, there are a great number of considerations that go into this decision, and really cannot be fully discussed on Quora. Again, for additional help visit LawTrades. I hope this answer is helpful! Good Luck! Please reach out if there is anything personally I can help you with.

In California, can someone shut down an LLC before the $800 franchise tax is due on the 15th day of the 4th month?

One can cancel a California limited liability company before the 15th day of the fourth month. However, such cancellation will not eliminate the obligation to pay the $800 annual franchise tax.Form FTB 3522 states:Every LLC that is doing business in California or that has articles of organization accepted or a certificate of registration issued by the SOS is subject to the $800 annual tax. The tax must be paid for each taxable year until a certificate of cancellation of registration or of articles of organization is filed with the SOS. Get FTB Pub. 1038, Guide to Dissolve, Surrender, or Cancel a California Business Entity, for more information.FTB Publication 1038 states:Your entity may avoid the minimum franchise or annual tax for current and subsequent taxable years if you meet all of the following requirements:Timely file your final franchise or annual tax return, including extension, for the preceding taxable year.Must cease doing or transacting business in California after the last day of the preceding taxable year.File the appropriate documents with the SOS within 12 months of the filing date of your final tax return.In the scenario posed by the OP, those requirements will not be met, thus the $800 annual franchise tax must be paid.

I started an LLC in CA 5 years ago and did nothing with it, which means I also never paid the annual $800 LLC franchise fee. Can I continue to ignore it?

Every year, more people than you can count just walk away from their LLCs (and corporations) - not just in California, but in other states, too.The fact that you have ignored the LLC for five years and nothing has happened pretty much tells the story: The State cannot justify the cost that would be required to go after every entity that has failed to file required reports and pay amounts due - particularly because (a) the entity probably has no money and (b) if the entity was formed properly and no fraud is involved, the founder likely has no personal liability for the entity’s debts or obligations.Of course, you should keep in mind that it is not appropriate for a lawyer to tell you to walk away because that would constitute advice to violate applicable law, thus few lawyers will render such advice. But what I have described above reflects reality.This question comes up so frequently that I blogged about it several years ago. Please see Can I Walk Away from My Suspended LLC?