New Estimated Payment Requirement
According to California, for taxable years beginning on or after January 1, 2009, the annual LLC fee must be estimated and paid by the 15th day of the 6th month of the current taxable year. For calendar-year LLCs, June 15, 2009 is the first due date for the new estimated fee for LLCs.
Who is Subject to the LLC Fee?
LLCs are subject to an annual fee based on their total California annual income. Total California annual income, for purposes of the LLC fee, means gross income plus the cost of goods sold that are paid or incurred in connection with the trade or business of the taxpayer derived from or attributable to this state.
If an LLC has a total California annual income of $250,000 or greater, the LLC must report a fee. The annual fee is due by the original due date of the return, which is the 15th day of the 4th month following the close of its taxable year.
A new penalty of 10 percent of the underpayment of the estimated fee will apply if the estimated LLC fee is underpaid.
Who is required to make an estimated payment?
An LLC makes an estimated LLC fee payment if they expect to owe a fee for the 2009 tax year.
LLCs will use new form FTB 3536 , Estimated Fee for LLCs, to remit the estimated fee. LLCs will also use form FTB 3536 (or FTB 3588 for an e-filed return) to pay by the due date of the LLC’s return, any amount of the LLC fee due which was not paid as an estimated fee payment.
How to Compute Fee
The new FTB 3536 has been revised to provide guidance on how to compute the estimated fee. The guidance provides that as the fee owed for 2009 may not be known by the 15th day of the 6th month of the current taxable year, LLCs may estimate the 2009 fee by completing the prior year LLC Income Worksheet, included in the 2008 Form 568 Booklet. LLCs use amounts of income expected for the 2009 taxable year to estimate the 2009 fee amount.
File on Time to Avoid Penalties and Interest
Mail the form along with the check or money order payable to us by the 15th day of the 6th month of the current taxable year (fiscal year) or June 15, 2009 (calendar year), to avoid late payment penalties and interest.
Note Regarding $800 Minimum Tax
Continue to use form FTB 3522 , LLC Tax Voucher, to pay the annual tax of $800 for taxable year 2009.
All forms are available on the Internet. Go to ftb.ca.gov and search for forms.
Click on the following link to access California's Tax News:
http://www.ftb.ca.gov/professionals/taxnews/2009/May/Index.shtml
If you have any questions, please contact me at leveragesalt@earthlink.net.