How to Shut Down a California LLC or Corporation and Avoid the $800 Annual Franchise Fee

Hi, I'm attorney Elizabeth Potts Weinstein. Today, we'll discuss how to close your California LLC or corporation, particularly if your business never launched or is no longer operational. Many business owners face the challenge of the $800 annual franchise fee in California and seek ways to avoid it for a non-existent business. Understanding the $800 Annual Franchise Fee In California, LLCs and corporations are required to pay an $800 minimum franchise tax annually. As of now, there is a waiver for the first year, but this may change soon, so it's important to understand your obligations and options. Who This Applies To Business Never Launched : You created an LLC or corporation but never started the business. Business No Longer Operational : You launched the business, but it has since ceased operations. Steps to Shut Down Your Business Voluntary Administrative Dissolution/Cancellation The process involves notifying the California Franchise Tax Board (FTB) that ...