Need tax help for CA LLC selling iOS/Android apps
last year, a friend and i started an LLC in california. we made a couple of mobile apps which we sell through apple, google, amazon, etc. shortly after that, i co-founded another startup, which has kept me very busy - too busy to think about paying taxes for my LLC. obviously, i'm a bit behind schedule here. i need help.
i've spent a few hours reading everything i could find about paying taxes on mobile app revenue, and how it applies to california LLCs. i found a lot of confusing and contradictory information. i could find no comprehensive, authoritative guide to paying taxes on mobile apps. most of the advice out there is written by people who are not tax experts. they seem to be just guessing. i don't want guesses, i want facts.
does anyone have a comprehensive, authoritative guide to paying taxes on mobile app revenue for both iOS and android and for US based companies? if not, can you perhaps recommend a tax professional that can help me? i'm wary of using just any old tax prep service, because i'm afraid they'll have no experience with mobile app developers. i would want someone who really knows what they're doing. thanks.
LLC Tax Business California Mobile Apps
1 Answer
most of the advice out there is written by people who are not taxGood. Here's a thought - Why don't you go to a tax expert then?
experts. they seem to be just guessing. i don't want guesses, i want
facts.
does anyone have a comprehensive, authoritative guide to paying taxesLLC is a partnership (in your case), a disregarded (but reporting!) entity. You're the one paying taxes, personally. The fact that its "mobile app revenue" is not really relevant to anything.
on mobile app revenue for both iOS and android and for US based companies?
You should get a properly licensed tax adviser (A California licensed CPA or EA) to give you a tax advice. You're right not to rely on amateur opinions, you're wrong to continue soliciting those instead of going to a properly licensed professional.
Don't forget, California LLC pays a LLC fee based on the gross income, in addition to the income tax on the net income that you'll pay on your personal tax returns. The minimum LLC fee is $800, and it should have been paid by mid-April for 2013.
By the way, have you submitted those? Without mentioning the LLC? That might be interpreted as tax fraud by the FTB and the IRS. An "innocent mistake" like that can be very costly. You have to remember that knowingly report incorrect information on your 1040 and 540 is perjury, a criminal offence.
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i did pay the $800 LLC fee for 2012, but not for 2013 yet. we actually took no withdrawls from the LLC's bank account in 2012, so i believe we do not have to report personal income from the LLC for 2012. does that sound correct? as far as i know, the only thing we've done wrong so far is to not file the LLC's taxes by april 15th. i assume we'll have to pay a late fee. – Ben H 10 years ago
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No, this is not correct. What you did or didn't withdraw is irrelevant. The LLC is a disregarded entity, all the LLC income *is* **your** personal income (divided between the partners). So not only that you're late with the $800, you also filed a false tax return if you didn't report your income from the LLC in it. – Littleadv 10 years ago
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Also, the LLC is required to file its own tax returns, both to CA and the IRS (forms 568 and 1065 respectively) which you probably didn't do as well. Penalties ahead. Good luck! – Littleadv 10 years ago
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dang, why does this all have to be so complicated. thanks for the advice. time to get a tax pro! – Ben H 10 years ago
