Is Your CA LLC a Zombie?
Stop the $800/year tax accrual. We guide you through the formal process of closing your inactive California entity.
Stop the $800/year tax accrual. We guide you through the formal process of closing your inactive California entity.
It is an abandoned California entity that was never formally dissolved. Even if you aren't doing business, the state continues to charge the $800 minimum tax every year. It isn't dead; it's just racking up debt.
In California, yes. The $800 minimum franchise tax is an "existence tax." If the LLC is on the books, you owe it. We help you file the paperwork to stop this clock from ticking.
Qualified owners can request a voluntary administrative cancellation (FTB 3716 PC). While not guaranteed, this is the state's official path to potentially resolving back-taxes for entities that never did business.
Most likely, yes. To close an LLC, the FTB often requires a final tax return or specific missing statements. We identify exactly what is missing so you don't stay in "Zombie" limbo forever.
Being "Suspended" is actually worse than being "Active." It means you've lost your legal rights, but the $800/year debt keeps growing. You must "Revive" or "Dissolve" to stop the bleeding.
Ignoring it is risky. The FTB has the power to file personal tax liens against members for unpaid LLC franchise taxes. Formal dissolution is the only way to protect your personal credit long-term.