QUESTION
We had a California Corporation that has not done business for 2.5 years. Do we still pay $800?
Asked on Nov 17th, 2014 on Business Law - California
More details to this question:
We had a California Corporation that has not done business for 2.5 years. We just received a notice and our accountant says "It appears that California did not receive the dissolution paperwork I provided you during 2013. Because of this, you will need to pay the fees that are identified on the notice (this will make the entity "active" again), file a 2013 tax return (as well as pay the 2013 annual fee of $800) and file the dissolution paperwork so that by December 31 the paperwork is processed." Is there anyway around this? It seems so odd that we would still need to pay the annual fee when zero business had been conducted. . .
1 ANSWER
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It is the corporation that owes the tax, not the shareholders.You should file some return indicating "final return" after confering with your CPA. However, profit or not, business activity or not, the corporation owes the minimum tax.
Answered on Nov 18th, 2014 at 3:30 PM