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Discussion:California LLC Tax - Personally Liable?

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Discussion Forum Index --> Basic Tax Questions --> California LLC Tax - Personally Liable?


Discussion Forum Index --> Tax Questions --> California LLC Tax - Personally Liable?

Cwmfirm (talk|edits) said:

18 August 2010
Individual has had several LLC's created in 2008 and used them for a short period in 2008. All the LLC's were multi-member. Initial/Ending Partnership (state & federal) returns were filed at the end of 2008. No LLC returns were ever filed with the state and the $800 LLC tax was never paid for any of the LLC's. No statement of info has or is being filed and no business is being done currently.

Question...Can the State collect from the LLC Members back LLC tax due? I actually called the State and couldn't get them to answer that question. If not, should the members just forget about them?

Trillium (talk|edits) said:

18 August 2010
This discussion might be helpful to you: Discussion:Annual $800 LLC Fee/Tax.

KatieJ (talk|edits) said:

18 August 2010
If the LLC members, or any of them, took anything out of an entity without paying for it (e.g., borrowed money from the entity and didn't pay it back) and thus caused the entity to become insolvent, then that member can be liable as a transferee for any taxes due from the entity, to the extent of the amount taken from it. Otherwise it does not appear that the state can proceed against the members as transferees of an LLC; the same principles should apply there as to corporations. Be advised, though, that there is as yet no case law or administrative ruling specific to LLCs that can be relied upon.

For a discussion of the issues see the California State Board of Equalization decision in Ralite, 90-SBE-004, 4/30/90, pet. for rhrg. den. 8/1/90. See also the Code sections cited by R2 in the discussion referred to by Trillium above.

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