Is there a way to avoid paying California LLC franchise tax if there was no income generated by the business

As long as you are registered as LLC in California & LLC member, you are required to pay $800 franchise tax fees. There are no exceptions.

Sole proprietors do not pay LLC tax but it has many risks including personal assets may be liable to pay your business debts etc. Its not worth the risk.

Rest all other scenarios you are required to pay franchise tax $800.


Posted In: Tax

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