Personal Liability for a California LLC’s taxes


A few years back I did a video ( on whether a corporation owner was liable for the California taxes that the corporation owed.  It was based upon the Ralite/Raylite case.

For years everyone has been saying that the same logic would apply for a California LLC.  That is to say that so long as the LLC didn’t make any distributions when its liabilities exceeded its assets, the FTB probably couldn’t come after the owners.

Well the moment we’ve all been waiting for has happened.  A FTB attorney wrote up a public memo on the subject.

Challenge is the FTB attorney was nice enough to say that they wouldn’t rule on the issue.


Pretty sure that is code for saying they don’t want to have a memo on the internet saying you don’t owe the taxes for your LLC.  Nothing like your government freely explaining your rights to you.

The link below will take you to the insightful memo.

CA LLC Liability for ftb taxes