FTB news: Tiered Limited Liability Companies: fee or no fee?

California law imposes an annual fee on every LLC that has "total California income" of $250,000 or more. "Total Income" for this purpose means gross income, plus the cost of goods sold, paid or incurred in connection with the trade or business of the taxpayer attributable to California, and specifically excludes all allocations, distributions or gains from another LLC that was already subject to the LLC fee. When you are looking to determine what the LLC's "total California income" is, don't include gross receipts received from another LLC...

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