LLC advice: FTB advice: Short Form Cancellations for LLCs.

• Position: FTB

California Code provisions allow LLCs to cancel and not be required to pay the first year annual tax if they meet certain conditions [Corporations Code Sec. 17350.5 and R&TC Sec. 17941(e)]. A domestic limited liability company may use the Secretary of State's Form LLC-4/8, Limited Liability Company Short Form Certificate of Cancellation, to cancel (ceasing the LLC's rights, powers and privileges) if it is filed within 12 months from the date the Articles of Organization were filed with the Secretary of State, and it meets the following requirements:

* Owe no debts or liabilities, except for its final state income tax.

* Filed or will file a timely final tax return.

* Conducted no business since...