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  1. #1
    Join Date
    May 2013
    Posts
    1

    Default Am I Personally Liable for Back LLC Taxes

    My question involves business law in the state of: California

    Hi, I forgot I own an LLC and have not file taxes since 2008. My lawyer told me not to file because the State of California cannot come after me personally for the back taxes. They can only go after the LLC. Is this true?

    The LLC has only one owner and it is me. It is still an active LLC according to the state website. No transaction has been made through the LLC since the inception. I simply forgot I have owned an LLC and forgot to file the taxes.

    Please advise.

    Thanks

    NL

  2. #2
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Am I Personally Liable for Back LLC Taxes

    Quote Quoting sonetboy3
    View Post
    My question involves business law in the state of: California

    Hi, I forgot I own an LLC and have not file taxes since 2008. My lawyer told me not to file because the State of California cannot come after me personally for the back taxes. They can only go after the LLC. Is this true?

    The LLC has only one owner and it is me. It is still an active LLC according to the state website. No transaction has been made through the LLC since the inception. I simply forgot I have owned an LLC and forgot to file the taxes.

    Please advise.

    Thanks

    NL

    A single member LLC (one owner) is a disregarded entity for tax purposes. You would include any income or expenses of the LLC on your personal tax return on Schedule C. If the LLC had no income or expenses, then there would be nothing to report.

    Your attorney was incorrect that they could not come after you directly if the LLC had income and you did not include it on your tax return.

  3. #3
    Join Date
    Jul 2007
    Location
    Florida
    Posts
    2,344

    Default Re: Am I Personally Liable for Back LLC Taxes

    Are you asking about income taxes or the FTB's $800 annual tax? Even if your LLC is a disregarded entity it is still subject to this annual tax, and yes, they can come after you personally for it. FTB 3556 explains this (google it). Yes, your attorney provided you bad advice.

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