Every California LLC (limited liability company) is subject to the state's annual $800 minimum franchise tax regardless of whether the LLC conducts any business inside or outside of California. Also, a California LLC must file an annual Statement of Information with the Secretary of State, and generally comply with other reporting requirements, as well. Thus, if a California LLC is no longer being used, it is often desirable to cancel and dissolve the company.
For an uncontested California LLC dissolution of a domestic LLC, where all LLC members agree to the LLC dissolution, the LLC is in good standing with the California Secretary of State, and all creditors have been or will be paid, the legal fee is generally $495 to dissolve and cancel a California limited liability company, inclusive of costs.
The flat fee is also generally $495 for foreign (out-of-state) LLCs that are no longer doing business in California, and wish to surrender their registration with the California Secretary of State permitting them to transact intrastate business.
In order to dissolve the LLC, all federal and California FTB tax returns must be filed; all back taxes must be paid; and all Secretary of State filings must be made and fees paid, but these need not be accomplished before enlisting an attorney to guide you through the LLC cancellation process.
For a suspended California LLC, or where the cancellation and/or dissolution is involuntary or contested, or to revive a suspended LLC, an hourly rate of $400+ applies instead of a flat fee. The hourly rate may also apply in some rare circumstances in which there are a large number of members, creditors, or where the LLC is in a highly-regulated business.
There are no state filing fees for any type of California LLC cancellation or foreign LLC surrender; however, if rush processing of the dissolution is required, additional legal fees and other requirements apply.
How do you dissolve your California LLC? Contact the firm today to start the LLC cancellation process and to avoid the accrual of additional minimum franchise taxes, fees, and reporting requirements.
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