@)#%)@!)!!!!! Annual Reports & Franchise Taxes are Theft

Tim

Tim

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Going over my books....we paid more than $1,000 this month to the State of NC to essentially verify our address. "Annual Reports" and "Franchise Taxes". Not Income, Unemployment, Personal Property, etc.....just $200/entity to click a couple pages on a website verifying our address and company officers. Pisses me off every year.

$0 ROI, $0 benefit. Not even a "well, here's the theoretical benefit...". Just, "pay this and we'll let you keep paying us the other taxes we impose for employing people that we'll tax."
 
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Tim said:
Going over my books....we paid more than $1,000 this month to the State of NC to essentially verify our address. "Annual Reports" and "Franchise Taxes". Not Income, Unemployment, Personal Property, etc.....just $200/entity to click a couple pages on a website verifying our address and company officers. Pisses me off every year.

$0 ROI, $0 benefit. Not even a "well, here's the theoretical benefit...". Just, "pay this and we'll let you keep paying us the other taxes we impose for employing people that we'll tax."
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Same here

Sent from my SM-N960U using Tapatalk
 
I agree, it's stupid. $200 to assert a name and address.

The ROI, is more subjective. Having been part of an adversarial proceeding to call BS on an LLC that declared bankruptcy, I can say that the value of doing business under assumed legal construct as a means to separate it from your personal assets and is cheap insurance at $200 per year.

In our case, we were able to successfully argue that the LLC was used simply as an alter ego and that the person routinely commingled funds between his business and personal finances. The result was that we held him personally liable but itwas a tough road getting there.

This has always caused me some concern in regards to funding an LLC, especially before it's ready to take wings and fly on its own so to speak.
 
ANY money you "give" to an LLC needs to be a contribution, not a loan. There should be no expectation of repayment, once you've done that you have co-mingled and could be in deep do do.. I totally agree, the $200.00 annual "filing" fee is pure, unadulterated BS. $200.00 just to tell the secretary of state that nothing has changed in the past 12 months, BS......

As for the taxes and fees, my LLC doesn't own a damned thing, the computer is MINE personally, the cell phone is MINE also. I don't have any office supply expenses and I no longer pay rent. MY salary is the only LLC expense, period, end. All of my expenses are billed back to the related client and come directly to me, not through the LLC. Keep it Mickey Mouse simple.....
 
Bailey Boat said:
As for the taxes and fees, my LLC doesn't own a damned thing, the computer is MINE personally, the cell phone is MINE also. I don't have any office supply expenses and I no longer pay rent. MY salary is the only LLC expense, period, end. All of my expenses are billed back to the related client and come directly to me, not through the LLC. Keep it Mickey Mouse simple.....
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I'm not your CPA, but that sounds all sorts of wrong. But, I haven't stayed at a Holiday Inn or passed any sort of licensure test recently.
 
Tim said:
I'm not your CPA, but that sounds all sorts of wrong. But, I haven't stayed at a Holiday Inn or passed any sort of licensure test recently.
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Don’t be silly, it’s the Internet, everybody is right all the time!

His view on commingling is overly simple, you can commingle if you have contributions or loans, lots of ways to get into trouble.

How he handles his expenses is neither right nor wrong, it is only optimal or not depending upon his circumstances. I expect that he misspoke when he said that the LLC only has his salary; his LLC probably pays it’s on franchise tax, it’s own D&O and other business insurance, payroll taxes, and it’s own bank fees. His salary swamps these expenses so he probably doesn’t think about them except when he’s cutting the checks.

It’s been decades since I passed the CPA exam, so this is not professional advice to anyone.
 
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Tim said:
Going over my books....we paid more than $1,000 this month to the State of NC to essentially verify our address. "Annual Reports" and "Franchise Taxes". Not Income, Unemployment, Personal Property, etc.....just $200/entity to click a couple pages on a website verifying our address and company officers. Pisses me off every year.

$0 ROI, $0 benefit. Not even a "well, here's the theoretical benefit...". Just, "pay this and we'll let you keep paying us the other taxes we impose for employing people that we'll tax."
Click to expand...
And yet... people keep electing politicians who impose these taxes. It's up to us to get them out.
 
You should see the "license" requirements for debt buying/collection companies. My wife keeps her company up to date in all 50 states. She is basically compliance control and general counsel. The dollar amounts are outrageous.
 
noway2 said:
When was the last time one had an option on the ballot for a politico that didn't want to impose taxes?
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I have always said I am waiting for the politician that runs on cutting everything. Taxes, regulations and laws. He just needs to stand up and say “I am not giving anyone shit. Except what you already earned.”

Or he can lie to get in office and then cut crap. But the kickback would make the crimes against Trump look like child’s play. My guess is my guy would get Kennedy’d.
 
PLLCs are exempt from annual reporting. Anyone wanna guess why?
 
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