Can you get out of an LLC before having to pay the $800 or 1.5% to the gov?

by Alison
(Huntington Beach, CA)

I was just wondering that, if a start up business flops in the first few months or proves to be not profitable, will you still have to pay the 1.5% of the revenue or ($800)? Thank you.

Answer

I believe that under California law, you do have to pay the franchise tax.

The California franchise tax has been ruled unconstitutional, but is up on appeal.

You can file a protective claim for a refund with the FTB (Franchise Tax Board). It will probably be some time before a final decision, so your refund might take some time....