Californian LLC?

Question

The minimum California corporate tax is $800. I want to use the LLC for stock trading. If I have a bad year is there some way I can recover or cover this tax? Maybe with W2 income or property tax.

Answer 1

No. LLC's must pay a tax in advance of $800 every year and it is not refundable. It is the cost of doing business in CA.

If you had a bad year and incurred a loss in trading, you would pay no additional income tax, but would still have to pay the minimum tax of $800 due each year.

The tax is paid in advance.