YEAR-END REMINDER – YOU DON’T HAVE TO DISSOLVE BEFORE YEAR-END!

By: Tamara B. Pow, Esq.

You may need to get all your holiday shopping done, but you do not have to dissolve or cancel your California corporation, limited partnership, limited liability partnership or limited liability company before year-end!

Many people still think they have to dissolve their California business entity before the end of 2024 to avoid paying the $800 minimum franchise tax or the $800 annual tax to the California Franchise Tax Board.  This is not true if:

• The business entity files a timely final 2024 tax return on or before the extended due date;
• The business entity does not do business in California after the end of 2024; and
• The entity files a Certificate of Dissolution, Certificate of Surrender, or Certificate of Cancellation with the California Secretary of State no later than 12-months after the date the final return was filed.

So give your business lawyer a break and go focus on your holiday plans!  We can take care of that 2024 dissolution in 2025.

This blog is written as of December 2024. Recommendations and legal requirements are changing rapidly, so please continue to review our legal updates or review postings on relevant government websites.

All blogs on this site are for educational purposes only, do not constitute legal advice or opinion, and should not be applied to your situation, or any specific situation, without consultation with counsel. Strategy Law, LLP does not provide any legal advice concerning any matter discussed in a blog except upon formal engagement including, without limitation, execution of Strategy Law, LLP’s formal legal services agreement, and with respect to specific factual situations.  No blog constitutes a guaranty, warranty, or prediction regarding the result of any legal matter discussed in the blog or any representation.

ADVERTISING