S Corp Status For Llc In Santa Clara
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FAQ
Unlike an S corporation, any “person”–i.e., any individual, partnership, limited partnership, trust, estate, association, corporation, other limited liability company, or other entity, whether domestic or foreign–can be a member of an LLC. See Corp C §17001(ae).
In most states, licensed professionals (architects, accountants, doctors, lawyers, therapists, etc.) offering professional services cannot form a “regular” California LLC. Instead, they must form a Professional LLC (PLLC).
The status of the LLC can be checked online on the Secretary of State's Business Search at BusinessSearch.sos.ca. See the FTB Suspension/Forfeiture section below for information about resolving an FTB suspended/forfeited status.
LLC treated as a corporation Business type If you want your LLC to be taxed as a corporation, you must file an election with the IRS. Use Entity Classification Election (Federal Form 8832) .
Limited Liability Companies Treated as S Corporations The LLC will also be treated as an S corporation for the state and must file Form 100S (California S Corporation Franchise or Income Tax Return). California and federal laws treat these companies as corporations subject to California corporation tax law.
The largest drawback of operating a single-member LLC in California is the hefty $800 franchise tax, and additional LLC fees on high income brackets. ing to Business Initiative, 10.34% of businesses in the United States are sole proprietorships.
