Q: I recently started an LLC for my business late last year. Do I need to file something about the CTA?
My business has no income yet. I'm just getting started doing Web Development and Technology Consultancy. My CPA mentioned I should check and see if the new CTA Law applies to me or not.
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- (916) 704-3009
- View Profile
- Answered
A:
As a new LLC owner in Phoenix, AZ, you should be aware that Arizona's new Commercial Transaction Privilege Tax (CTA) law may apply to your business. The CTA law imposes taxes on various business activities, including web development and technology consultancy services. Even if your business has not generated any income yet, you may still be required to file certain forms or registrations related to the CTA law, depending on your business activities and anticipated revenue.
Since your CPA has mentioned the CTA law, it's advisable to follow up with them to determine your specific obligations and ensure compliance with Arizona tax regulations. Your CPA can provide guidance on whether you need to register for the CTA tax and file any necessary forms, even if your business has not yet generated income. They can also help you understand any exemptions or thresholds that may apply to your business and assist you in meeting your tax obligations accurately and timely.
Additionally, you may want to consult with a business attorney or tax advisor who is familiar with Arizona tax laws and can provide further clarification on your obligations under the CTA law. Seeking professional guidance early on can help you avoid potential penalties or compliance issues down the line and ensure that your LLC operates in accordance with state tax regulations as you continue to grow your business.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
