Blog

California LLCs accidentally charged late filing fee

Earlier this week, we discussed the importance of filing your Delaware franchise taxes, and of submitting them in a timely manner. Failing to do so could result in some pretty steep penalties, which themselves accrue interest the longer the bill remains unpaid. Delaware isn't the only state where this is true, which some California business proprietors are discovering in startling fashion: despite their presumptive exempt status, many owners of single person LLCs are unexpectedly finding themselves on the wrong end of a hefty bill.

For its part, the state's Franchise Tax Board (FTB) has issued information to help quell the anxiety caused by these accidental charges. On its site, it assured owners that if they had been erroneously charged a late filing fee, it would be refunded in addition to all applicable interest accrued. However, this refund only currently applies to years within the statute of limitations, pending the exploration of alternative relief options.

Business owners who believe they are eligible but do not receive a refund are welcome to appeal the decision. The pertinent addresses are provided below, in an excerpt from the FTB's website. 

You can file a claim for refund, stating the basis of your claim, and mail it to:

BUSINESS ENTITY NON-REMIT RETURN MS A311
FRANCHISE TAX BOARD
PO BOX 942857
SACRAMENTO CA 94257-0500

For private carrier or overnight delivery service, send to:

BUSINESS ENTITY NON-REMIT RETURN MS A311
FRANCHISE TAX BOARD
SACRAMENTO CA 95827-1500

The FTB also noted that business owners whose claims are denied will have the right to file an appeal with the State Board of Equalization. 

While it seems  as if everything should work out for most of these California business owners, the situation itself must be stressful for many of them. Consulting with an experienced incorporation services company when forming a limited liability corporation can help you understand the obligations associated with this type of entity.