1. Verify the status of your corporation: Before changing the officers of your corporation, you must ensure that it is in good standing with the state. On the website of the California Secretary of State, you can look up the status of your corporation.
2. Submit a statement of information: Following confirmation that your corporation is legitimate, you must submit a statement of information to the Secretary of State’s office in California. Your new officers’ names and addresses must be listed in this declaration.
3. Pay the requisite fees: To file your statement of information, you must pay a $25 filing fee. If you require expedited processing, you may also be required to pay additional fees. 4. Await approval: After submitting your statement of information, you must wait for the California Secretary of State’s office to provide its blessing. Depending on the number of applications they get, this procedure may take several weeks.
You must submit your statement of information by the deadline in order to avoid paying your corporation’s $800 franchise tax. You risk fines and interest if you don’t submit your statement of information by the deadline.
Your federal income tax return does not allow you to deduct the $800 LLC charge from California. Only state taxes that are paid in conjunction with a trade or business are deducted on your federal return, therefore this fee is regarded as a state tax.
The California LLC fee is so expensive because it is regarded as a levy on the right to conduct business in California. This tax goes toward supporting state services and initiatives including public safety and education.
You risk fines and interest if you don’t submit your LLC 12 form on time in California. Additionally, your LLC can be put on hold, which would prevent you from conducting business in California until you submit your LLC 12 form and settle any outstanding fines or costs.