Q: Do I have to continue to pay $800. to the California Franchise Tax Board if I am not doing any business anymore, yet hav
Credit card liabilities to banks? I read the Calif Corp Codes and it looks like you can't dissolve until you handle your finances. Can I just resign from my disregarded entity and then after 5 years if none of the creditors come after me, then is this business considered terminated? Currently, I dissolved the business which was a domestic entity in Texas. The foreign cousin to my entity is in CA. Never made a dime in Texas because the entity owned 1 house in California. Only money I made was negative $500 a month for almost 4 years now. I know, stupid investment. Anyway, do I have to pay taxes until I resolve the business credit cards issues?
A: There is a law that prohibits the FTB from going after your personal bank account for an LLC franchise fee, unless a member has taken assets from the LLC for less than value. In your case you do not have to pay the $800 if the entity is not doing business any more, even if your company gets the notices
A: It sounds that you are talking about an LLC rather than a corporation. If you want to dissolve it formally, you must pay (or get them waived)all the taxes and fees. I suggest you consult a tax attorney in person to resolve the matter. Good luck,
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