We canceled an LLC with the state of CA a month after my client created it. I assume I don't have to file a CA return now since it was CANCELED and not dissolved? My guess is that I SHOULD file the FED to close out the Fed Tax ID. Any suggestions?
Thank you,
Patrick, CPA
GMTAXES
FTB confirmed with me that there was NO FILING requirement since we canceled the LLC. I'm going to go ahead and file a zero dollar first and last Fed return because it's the easiest way that I know of to finalize with the IRS.
Any other comments woud be appreciated.
federal might not have a requirement, but CA sure does. They want their $800.
I have found that if the LLC had no activity whatsoever that a federal filing is not required. You could do an Initial/final return with zero activity too. Whatever lets you sleep at night.
You can look at it this way too, since CA is WAY more picky than federal and they do not have the filing requirement.
you need to disolve the LLC with the secretary of state and file a first and last return and pay the $800. Otherwise you will be in CA forever.
Trust me, it took me 5 years to get an S-corp out of CA because an attorney set up the client as a CA s-corp (then he died) so we couldn't even blame it on the attorney. Penalties, interest and several $800 payments later we are finally out of CA. Yeah!
Sounds like you had and ongoing entity. If you the LLC was set up and did no business it can be dissolved without a return and no $800 fee. If you actually performed services or operated the business then a whole different story.
