Video instructions and help with filling out and completing Who Form 1065 Schedule M 3 Disregarded

Instructions and Help about Who Form 1065 Schedule M 3 Disregarded

The following information is provided for educational purposes only and in no way constitutes legal tax or financial advice for legal tax or financial advice specific to your business needs we encourage you to consult with a licensed attorney and/or CPA in your state the following information is copyright protected no part of this lesson may be redistributed copied modified or adapted without prior written consent of the author California has a number of ongoing requirements for your LLC to remain in compliance with the state the first of these is the statement of information which we discussed in a prior lesson remember your first statement of information is due within 90 days of the approval of your LLC then you will need to file it again every two years it will be due by the anniversary date of the approval of your LLC if you have not watched this lesson yet please do so now the next requirement is the annual LLC franchise tax of $800 California charges an eight hundred dollar annual LLC franchise tax on LLC's this tax is due by all LLC's regardless of income or the business activity this is a prepaid tax meaning that it pays for the current year your first $800 payment for the LLC franchise tax is due by the 15th day of the fourth month after your LLC is filed the month your LLC is filed counts as month one regardless if you file on the first of the month the last of the month or any day of the month really this means that if you were to file your LLC on March 22nd then you must pay the $800 fee no later than June 15th in this example March is month 1 April is month 2 May month 3 and June is month 4 then every year after your first payment your $800 LLC franchise tax will be due by April 15th you pay the $800 LLC franchise tax using form three five to two called the LLC tax voucher we've included this form below in the download section so that you can see it and get familiar with it failure to file before the deadline will result in the state charging late fees and penalties and they will eventually dissolve your LLC if you do not pay the eight hundred dollar annual LLC Franchise Tax this is not a popular requirement for California but it is mandatory and it is the cost of doing business in the state there's no way to get around this tax if you want to form an LLC in California you have to pay this 800 our tax within four months after your file l after you file your LLC and then again by April 15th of each year next is form 35 36 the estimated fee for LLC's in addition to filing and paying the 800 our annual LLC Franchise Tax you'll also have to file a return called form 35/36 estimated fee for LLC's and pay an additional fee only if your LLC will make two hundred and fifty thousand dollars or more during the tax year the more you make the higher the fee for example again if you're under $250,000 you don't have to pay this additional fee but if you're between 250 K and 500 K the fee is nine hundred dollars between 500 and a million it's $2,500 etc as you can look in the table there again the fees above are in addition to the $800 annual LLC Franchise Tax and again you only have to worry about this fee if you make over two hundred and fifty thousand dollars during the tax year form 35:36 again the estimated fee for LLC's must be filed and paid by the 15th day of the six month after your LLC has filed then every year after your first payment form 35:36 will be due by June 15th if you make less than $250,000 again you do not have to file Form 35:36 you'll be able to download form 35:36 below this video but we're going to recommend that you get help with this as it's quite complicated we'll cover more on this in just a minute next form 568 LLC return income in addition to paying eight hard ollar annual LLC franchise tax with form 35 22 do buy all LLC's and filing and paying the estimated fee for only LLC's with income over 250,000 all LLC's also need to file what's called an LLC return of income form 568 form 568 pays taxes on previous year's income just like regular federal taxes again form 568 is filed by all LLC's regardless of income form 568 is due by the 15th day of the fourth month after the end of your taxable year this will most likely be April 15th if you run your tax year January to December which and 99% of our members do think of form 568 as a summary of all the LLC's financial activity during a given tax year the purpose of filing form 568 is to report the estimated fee for your LLC report the $800 annual Franchise Tax report and pay taxes for any members who are not California residents report income deductions gains losses cost of goods sold salaries and more we're also going to recommend that you get help from an accountant with form 568 as this one is definitely confusing it's seven pages long other tax requirements and recommendations depending on your LLC's income how many members your LLC has whether or not you have employees what state the members are resident of and what type of business you have you most likely need to file additional forms besides what we have already mentioned and you may also have to pay additional taxes to the state such tax documents might be a schedule k-1 a Schedule II O a Schedule D and other documents calculating your