LLC fees in California
$70
Are LLC Fees Tax Deductible in California?
Short answer: Yes, as a business expense: California charges $70 to form an LLC; ongoing: $20 Statement of Information, every 2 years (initial within 90 days of formation). $800 annual LLC tax, plus LLC fee if total CA income >= $250k: $900 ($250k-$499,999), $2,500 ($500k-$999,999), $6,000 ($1M-$4,999,999), $11,790 ($5M+). $800 tax due 15th day of 4th month of tax year; estimated LLC fee due 15th day of 6th month.
Annual report fees and state LLC taxes are ordinary business expenses (IRC §162). Formation fees are organizational costs: deduct up to $5,000 the first year and amortize the rest over 15 years (IRC §195, §709).
Records to keep: Keep the state filing receipt, proof of payment, and your LLC's formation and annual report confirmations.
LLC fees in California
$70
General Business
Yes, as a business expense: California charges $70 to form an LLC; ongoing: $20 Statement of Information, every 2 years (initial within 90 days of formation). $800 annual LLC tax, plus LLC fee if total CA income >= $250k: $900 ($250k-$499,999), $2,500 ($500k-$999,999), $6,000 ($1M-$4,999,999), $11,790 ($5M+). $800 tax due 15th day of 4th month of tax year; estimated LLC fee due 15th day of 6th month.
Business justification
Yes, as a business expense: California charges $70 to form an LLC; ongoing: $20 Statement of Information, every 2 years (initial within 90 days of formation). $800 annual LLC tax, plus LLC fee if total CA income >= $250k: $900 ($250k-$499,999), $2,500 ($500k-$999,999), $6,000 ($1M-$4,999,999), $11,790 ($5M+). $800 tax due 15th day of 4th month of tax year; estimated LLC fee due 15th day of 6th month. Annual report fees and state LLC taxes are ordinary business expenses (IRC §162). Formation fees are organizational costs: deduct up to $5,000 the first year and amortize the rest over 15 years (IRC §195, §709).
Category
- Tax Write-Off Rules