Discussion:Questions on DE6's
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Scottiedog (talk|edits) said: | 7 May 2008 |
| Hey All,
First of all, thanks for taking the time to read this post, I am a totally lost in this world of taxes. Anyway, on to my question... I run an LLC in California and I used to employ one other person. She had to leave as the business was going through a rough patch and pretty much left me to all of the admin. My question is regarding our account with the EDD, do I have to keep it open or can I close it? Both me and her were down as employed by the LLC, now I just take out drawings for wages when I can. | |
| May 8, 2008 | |
If your LLC is a partnership (the normal situation), YOU shouldn't have been on payroll in the first place. (If you search in yellow box in tax questions, there are threads). Partners are taxed on the income of the partnership times % of ownership, whether distributed or not (this is a simple version of partnership taxation)....they don't get W-2s.
You need to consider amending the payroll tax returns. | |
Actionbsns (talk|edits) said: | 8 May 2008 |
| If the LLC is taxed as an S Corp, Scottiedog can be on payroll. However, it sounds more like it may be a single member LLC, in which case, you still can't be on payroll. But that's another issue to your question regarding the EDD account. I believe it can lay dormant if you file your forms with all zero's, which you might want to do for awhile to give your business a chance to recover and you may find you need to hire someone again. The account is in place and you simply start adding numbers. You can also opt to close it out by marking the box "Final return". I've done that before and found it takes the state a while sometimes to stop sending forms, maybe they've gotten better in the last five years, though. | |
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