I am a single member LLC in California and my accountant says that I will owe over $6,000 to the state of CA this year...I didn't have any profits, I have a loss. Is this correct?
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I love being an accountant, believe it or not it has been my dream since I was 12:) I have over a decade of experience in public accounting and I am very qualified to handle even the largest and most complicated tax issues, but I also enjoy the small ones. I love helping small businesses with their accounting so they have the time to go do what they are best at...growing their business! I also teach accounting, entrepreneurial business, and finance at the college level, and I have 3 children. Taxes are complicated but for a handful of states that have legally recognized same sex marriages taxes are VERY complicated. As a California CPA with multiple clients that fall in this category I have become an expert in this area. Important changes were made in 2010...please contact me for help if this applies to you. View Profile
Hi there! I am in California too and I have a few LLC clients in your situation. Your accountant is correct, sorry to be the bearer of bad news. It sounds like your gross reciepts fell in the tax bracket of $1-5 million. That yields a tax bill to CA of $6800! Even though you had a loss, you must pay the LLC franchise tax based on your GROSS reciepts. Let me know if this answers your question and I would be happy to help you with some tax planning for 2010 so there are no surprises at tax time.
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