4 ms·

It has nothing to do with filings. It costs the state next to nothing. It's a very-slightly-disguised franchise tax, on top of their actual franchise tax if you

It has nothing to do with filings. It costs the state next to nothing. It's a very-slightly-disguised franchise tax, on top of their actual franchise tax if you make any money. There are 9 states with no annual LLC fees. And almost all of the rest are $50 or under. LLCs have almost no requirements for corporate governance. That's why they're attractive.

manquer 6y ago
Compared to public company LLC have less requirements yes. Howver you still need a board and resolutions and you have submit your LLC annual returns have seperate bank accounts at the minimum. None of that is required for a sole proprietor. > costs the state next to nothing How are you concluding this ? Cost to the state is just not storing few bits somewhere . Even just applications they have to build maintain those bits will cost the state a lot of money. The non tech part of the government which needs your data. every bank , credit worthiness, every other biz which needs to work with you, every dept that needs to regulate what you do , every small biz schemes you would like to benefit from. Healthcare, employee taxes, courts etc .... All of these reference your corporate entity "ID" the government needs to maintain and service them. Heck even apple will ask your DUNS number when you register non personal developer account. It may or may not cost $800, but it certainly isnt next to nothing. other states maybe absorbing the costs and are trying to attract new biz, doesn't mean that california has to be cheap too. Like I said there are other entity structures which are cheaper and designed for businesses that cannot afford 800 dollars a year in filing fee.
- dingaling 6y ago
  > Heck even apple will ask your DUNS number That's a great example; after paying the annual $800 fee an LLC then has to go to a private entity, Dun & Bradstreet, to get a unique identifier...
- adventured 6y ago
  > Howver you still need a board and resolutions and you have submit your LLC annual returns have seperate bank accounts at the minimum. LLCs do not need to have boards. If you're going to operate a simple single member LLC for example, there is typically no great reason to have a board. https://info.legalzoom.com/article/does-llc-have-board-directors https://info.legalzoom.com/article/does-llc-have-board-direc... https://smallbusiness.chron.com/singlemember-llc-need-board-directors-55403.html https://smallbusiness.chron.com/singlemember-llc-need-board-...
- paul_f 6y ago
  A single member LLC dopes not have to file a tax return - same as a sole proprietorship. Unless there is a partnership, or you need to have some sort of corporate veil for legal reasons, then there is little value in an LLC if a sole owner.
gamblor956 6y ago
If you physically do business in California with an LLC, you need to register it whether or not it is legally organized in CA.

manquer 6y ago

Compared to public company LLC have less requirements yes. Howver you still need a board and resolutions and you have submit your LLC annual returns have seperate bank accounts at the minimum. None of that is required for a sole proprietor. > costs the state next to nothing How are you concluding this ? Cost to the state is just not storing few bits somewhere . Even just applications they have to build maintain those bits will cost the state a lot of money. The non tech part of the government which needs your data. every bank , credit worthiness, every other biz which needs to work with you, every dept that needs to regulate what you do , every small biz schemes you would like to benefit from. Healthcare, employee taxes, courts etc .... All of these reference your corporate entity "ID" the government needs to maintain and service them. Heck even apple will ask your DUNS number when you register non personal developer account. It may or may not cost $800, but it certainly isnt next to nothing. other states maybe absorbing the costs and are trying to attract new biz, doesn't mean that california has to be cheap too. Like I said there are other entity structures which are cheaper and designed for businesses that cannot afford 800 dollars a year in filing fee.

dingaling 6y ago
> Heck even apple will ask your DUNS number That's a great example; after paying the annual $800 fee an LLC then has to go to a private entity, Dun & Bradstreet, to get a unique identifier...
adventured 6y ago
> Howver you still need a board and resolutions and you have submit your LLC annual returns have seperate bank accounts at the minimum. LLCs do not need to have boards. If you're going to operate a simple single member LLC for example, there is typically no great reason to have a board. https://info.legalzoom.com/article/does-llc-have-board-directors https://info.legalzoom.com/article/does-llc-have-board-direc... https://smallbusiness.chron.com/singlemember-llc-need-board-directors-55403.html https://smallbusiness.chron.com/singlemember-llc-need-board-...
paul_f 6y ago
A single member LLC dopes not have to file a tax return - same as a sole proprietorship. Unless there is a partnership, or you need to have some sort of corporate veil for legal reasons, then there is little value in an LLC if a sole owner.

gamblor956 6y ago

If you physically do business in California with an LLC, you need to register it whether or not it is legally organized in CA.