LLC Business Owners - Question For Ya

[sosoe]

What was the point/intention of converting it on the last day of the year?

I was going to get it done in 2014- but was pushing it off till the new year, then was told to just get it done ASAP and happened to be at the end of the year. I'm also assuming it will say I was in business (LLC) since 2014-

[jakesford]

I talked to the state and they said I will owe some money, mostly due to late fees, collection fees, etc. She didn't say I will have to file for a missed franchise tax returns and get a tax clearance letter from TX (comptroller I'm assuming) -
Ill be going on line this week to pay the reinstatement, once done ill call the Comptroller back and ask them for a reinstatement letter to send to the SOS to reinstate.

Thanks!

Penalties and interest are only computed on the tax due. If you owe no tax on the franchise tax returns there won't be any penalty or interest. If there ends up being any penalties you can request that they be abated and usually the comptroller will grant the request. If you haven't filed a return, the comptroller assumes a liability is owed and computes penalty & interest based on this arbitrary amount. Once the actual returns are filed, they adjust the account to actual. So don't pay any penalty or interest until the returns are filed and you pursue all your options.

I would work with a CPA to get everything cleared up. TX franchise returns are fairly simple, especially if your gross receipts are under the $1MM level, but there are some tricky nuances to them.

[sosoe]

Penalties and interest are only computed on the tax due. If you owe no tax on the franchise tax returns there won't be any penalty or interest. If there ends up being any penalties you can request that they be abated and usually the comptroller will grant the request. If you haven't filed a return, the comptroller assumes a liability is owed and computes penalty & interest based on this arbitrary amount. Once the actual returns are filed, they adjust the account to actual. So don't pay any penalty or interest until the returns are filed and you pursue all your options.

I would work with a CPA to get everything cleared up. TX franchise returns are fairly simple, especially if your gross receipts are under the $1MM level, but there are some tricky nuances to them.

Gotcha. She said it would be a penalty for not filling, even thought i did not hit that $1mm level. Ill file the return and then ask the Comptroller to abate that fee then get the reinstatement letter for the SOS.

good ?

[jakesford]

Gotcha. She said it would be a penalty for not filling, even thought i did not hit that $1mm level. Ill file the return and then ask the Comptroller to abate that fee then get the reinstatement letter for the SOS.

good ?

Yup, just explain it was missed as an initial year return, but you may have to make the request in writing. You will still have to pay the SOS to be re-instated... Nothing that you can do about that.

[War Machine]

just wait til youre on here asking about s corps and making that choooooooooo chooooooooooo bread

[stephen4785]

It's not as bad as it sounds. Iv had that happen to me and it cost me something like $50 to get everything re-instated. Flipped me out though because I came home and there was a blue note on my door from the TX comptroller saying they came by. People at the comptrollers office that Iv dealt with are pretty informative and are nice.

[sosoe]

Seems as it has been resolved.

Thanks to all who sent the PM's and also replied on this thread.