California Business Portal

Taxes

My limited liability company (LLC) has a nonconsenting nonresident (NCNR) member. How do I report the NCNR members' tax?

Use Schedule T, Nonconsenting Nonresident Members' Tax Liability, on the Form 585 to calculate and report NCNR members' taxes that the LLC must pay.

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My limited liability company (LLC) reported taxes for me as a nonconsenting nonresident (NCNR) member. If the LLC pays the NCNR tax, then do I still need to file a California tax return?

Yes, completion of FTB 3832, Limited Liability Company Nonresident Members' Consent, the single member's consent, or the Schedule T does not satisfy the consenting member's California filing requirement.

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My limited liability company (LLC) has nonresident members. Can the LLC file a tax return for the nonresident member?

Yes, nonresident members of an LLC doing business or deriving income in California may elect to file a group nonresident tax return (California Revenue and Taxation Code Section 18535). Get Publication 1067, Gu...

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My limited liability company (LLC) has a nonresident member and we are making a payment to them. Does the LLC have any special filing requirements?

California Revenue and Taxation Code Section 18662 and related regulations require withholding of California income or franchise taxes from payments and distributions made to nonresidents of California source i...

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When would a limited liability company (LLC) be concerned about doing business in California?

California defines doing business as "actively engaging in any transaction for the purpose of financial or pecuniary gain or profit" (California Revenue and Taxation Code (R&TC) Section 23101(a)). In additi...

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When would a limited liability company (LLC) be subject to penalties or interest?

LLCs may be subject to penalties and interest if they: Pay tax (including Nonconsenting Nonresident (NCNR)) or fees late. Underpay tax (including NCNR) or fees. File their tax return beyond the exten...

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The California Secretary of State's record shows my limited liability company's (LLC) status as suspended/forfeited. How did this happen?

If an LLC does not file Form 568 and/or does not pay all tax, penalty, or interest due, then its powers, rights, and privileges may be suspended (domestic LLC) or forfeited (foreign LLC). Also, any contracts en...

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What is the minimum franchise tax?

Minimum franchise tax is the amount you must pay the first quarter of each accounting period whether the corporation is active, operates at a loss, or does not do business. The current minimum franchise tax is ...

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My corporation is not doing business; does it have to pay the minimum franchise tax?

Yes, if your corporation is incorporated in or is qualified to do business in California, you must file a tax return and pay the minimum franchise tax. However, if your corporation is not qualified and not doin...

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My business entity received a request/demand for a tax return from the Franchise Tax Board (FTB), why?

FTB has no record of your California business entity's income tax return for the year specified.

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