Time For An LLC

If you’re looking to save $800 on your CA LLC this year, keep reading.

California’s 2020 Budget Act included relief for small business owners during COVID - and the relief could save you *lots* if you’re looking to set up your LLC within the next few years.

The scoop: Any new LLC formed between January 1, 2021 and December 31, 2023 in California is exempt from the $800 minimum annual franchise tax for its first taxable year.

The $800 minimum fee usually needs to be paid yearly to keep the LLC (legally) active, but now you can save during your first year as an LLC!

And I bet I know what your next question is...

How do I know when I need an LLC?

[and like the broken record that I am]:
It depends.

Here’s usually what we assess:

• What personal assets could be vulnerable?
• Do you have business partners?
• How much money is the business making?
• Do you have business insurance?
• How will this affect your taxes?
• How many business(es) are you running?
• What industry are you in?

See what I mean?

P.S. - If you were ready to make a move on that LLC and were looking for a sign...this is it.

*Disclaimer: This post is strictly for general informational purposes only and is not intended to constitute legal advice.