Free Market Forever

June 20, 2009

Should you pay LLC tax if you just want to abandon the LLC?

Filed under: Uncategorized — admin @ 9:02 am

Lindsay: Hello Theresa,
Theresa: Hello
Theresa: What is the file number?
Lindsay: I need to look that up
Lindsay: hang on
Theresa: I found it
Theresa: The 604.00 covers 07 & 08 taxes.
Theresa: If you are cancelling, 2009 is also due
Lindsay: ******
Lindsay: Oh I made that on 2007
Theresa: You want to be sure the 604.00 is paid by 6-1 to avoid further penalty
Theresa: Do you have a cancelled check?
Lindsay: I know
Lindsay: By the way, is the member personally liable for the LLC tax?
Lindsay: What a canceled check is for?
Lindsay: I can pay with card
Theresa: You said you paid the 2007 taxes.  How did you pay?
Lindsay: I mean I made the LLC on 2007
Lindsay: I knew about LLC tax only 2 weeks ago when I first see a bill
Lindsay: Had I known there will be a $250 LLC tax, I wouldn’t have made the LLC at all
Theresa: The 2007 tax was due 6-1-08 and 2 notices were sent to your agent   The 2008 tax notice was send this February
Lindsay: Yea… I didn’t receive the first one that’s one thing for sure. i am not sure they are still my agent because I didn’t pay their $50 per year agent fee
Theresa: They have not resigned you still have an agent and the llc active
Lindsay: I thought I haven’t start the biz anyway what can possibly go wrong. Not like anyone will sue the assetless LLC
Lindsay: I see.
Lindsay: If I do not pay, will someone seize my US assets if I latter have one?
Lindsay: Will I go to jai;?
Lindsay: Because I check your law and it seems that only the LLC’s assets are pursued
Theresa: No the company will change to void after 3 years of unpaid tax but taxes continue to accrue
Lindsay: I see.
Theresa: We do not go after unpaid taxes
Lindsay: How will that affect my status as member?
Lindsay: So the consequences is that the LLC it self will be in very bad standing and unless I want to revive it there will be no further problem?
Lindsay: Am I correct?
Lindsay: If not paying means I can go to jail or I can never have an asset in US or I can never make another LLC in delaware, you should tell me.
Lindsay: Because otherwise, I am considering abandoning the LLC as an option.
Theresa: THe status will change after unpaid taxes for 3 years
Theresa: We do not go after unpaid taxes
Lindsay: I see.
Lindsay: Thank you.
Theresa: You’re welcome
Lindsay: You do not go after unpaid taxes, will someone do?
Lindsay: I am truly sorry for my stupid question. This is my first LLC and Delaware seems to be a great place.
Lindsay: I mean will IRS go after unpaid LLC tax?
Lindsay: Will attorney general go after unpaid LLC tax?
Lindsay: Not income tax, of course, there is no income. The LLC tax. The $250 per year thingy.
Lindsay: Is it a crime to own an LLC and not paying the LLC tax?
Theresa: We do not go after unpaid tax.  I don’t know what the IRS will do.  THe attorney general does not do anything unless we go to them.  Income tax is with the Division of Revenue.
Lindsay: I see.
Lindsay: I’ve heard many LLC are voided in internet.
Lindsay: I guess I am not the only one making the stupid mistake of making an LLC and forget about it
Lindsay: Well, is everything about LLC in http://delcode.delaware.gov/title6/c018/sc09/index.shtml?
Lindsay: It’s chapter 18 right?
Lindsay: That’s where all the law regarding the LLC right?
Theresa: Yes that is correct
Lindsay: I didn’t see the word void there
Theresa: Section 18-1108
Lindsay: Thanks a lot Theresa
Lindsay: Thanks a lot.
Lindsay: Bye

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