Entity election in Cali

If you are going to set up an entity (Scorp or LLC) please be ready to use it. In some states like California, there are annual fees even if you have no income. Clients often say "I didnt even use it" or "I did not make any money". The fact of the matter is that returns must be filed regardless. More importantly, it is important to properly close down an entity if no longer in use. Annual fees and penalties can continue to accrue.