1. Home
  2. Taxes General Forum
  3. Personal Liability for Franchise Tax
  4. Page 2

Personal Liability for Franchise Tax

formatting link
>> (Shareholder Liability for Minimum Corporate Corporate Franchise Tax in>>> California).

I hope you are merely being sloppy with your words here. In California, a single member LLC is NOT disregarded - it is a valid LLC and affords limited liability protection to its single member. It is disregarded for tax purposes only. Likewise, an LLC with multiple members does not "operate as a partnership", it operates as a multi member LLC. It may be TAXED as either a partnership or a corporation. This sort of confusion may have been what led to some comment up thread that an LLC taxed as a partnership resulted in its members being personally liable for LLC taxes.

Reply to
Pico Rico
Loading thread data ...

formatting link
>>> (Shareholder Liability for Minimum Corporate Corporate Franchise Tax in>>>> California).

The subject of the thread is tax liability. The replies relate to tax liability. My post used the term "for tax purposes" three times. We are discussing how member(s) of an LLC are treated for tax purposes. Each state can set its own rules for members of LLCs. This discussion involved tax liability in the state of CA. That required researching CA law on alter ego liability as it related to members of an LLC. The research revealed that the liability for the specific tax identified in the OP does not pass through to the members of an LLC treated as a partnership or a corporation except under certain circumstances that were not present in the set of facts in the OP.

Reply to
Alan

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.