My Legal Zoom LLC from 2000 still says pending cancellation. Do I still need to pay the $800? The business ended in 2003.

Asked 8 months ago - Los Angeles, CA

My Legal Zoom LLC from 2000 still says pending cancellation on the CA LLC Website. I thought I was done with it when the business ended. The business lost money and ended in 2002. The FTB sends postcards in my name to my old address every year regarding the LLC and Taxes and Fees. Their site says I am liable for $800 per year since $800 + interest and other fees. And that a pending cancellation is still considered active status. Do I still need to pay the $800 per year from 2000? In order to change to cancelled status I am told I have to pay the back fees of $800 per year. What if I do not pay? I am afraid if I contact them and they will request payment. I do not have $20,000 around to pay them. Some on the site say Yes. Some say No. What to do?

Attorney answers (3)

  1. Janet Spiro Martin

    Pro

    Contributor Level 13

    4

    Lawyers agree

    Answered . My experience is that the FTB does not come after you, personally as long as you didn't file a tax return that shows income flowing to you the owner. If you did, I am surprised there has been no action at this point by them, other than sending the annual postcards.CA usually administratively dissolves the entity automatically after a few years. Most attorneys "unofficially" advise the "walk away" option. You can always incorporate or get a new LLC anytime. If you did receive any significant income from the LLC, there is a chance CA will come after you personally, but I am not so sure there hasn't already been a time limit for such action. I agree with my colleagues 12 years seems to me to be more enough time.

    The foregoing is for informational purposes only and may not be relied on as attorney-client advice.
  2. Sagar P. Parikh

    Contributor Level 20

    4

    Lawyers agree

    Answered . It is probably better to not pay, as the FTB will probably not come after you personally since the taxes and fees are due by the LLC only .

  3. Michael Charles Doland

    Contributor Level 20

    3

    Lawyers agree

    Answered . Since the liability belongs to the entity, not the owner of the entity, I would no pay, but I would be interested to hear from any California tax attorney if a non-operating entity has ever been sued after 12 years.

    The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may... more

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