Who Must Pay CA Franchise Tax? California Franchise Tax Overview

California imposes a franchise tax on businesses operating in the state. Who is required to pay this tax and what are the rates?

  • Every corporation, LLC, limited partnership, and limited liability partnership doing business in California must pay the annual franchise tax.
  • Sole proprietorships and general partnerships not registered with the Secretary of State are exempt from this tax.

Learn about the minimum franchise tax, different rates for various entities, and exemptions.

  • The minimum franchise tax is $800 per year for most entities, except for S corporations, which pay 1.5% tax on net income or $800.
  • First-year businesses formed in the last 15 days of the year are exempt from the minimum tax for that first year.
  • LLCs generally pay a flat fee of $800 for the franchise tax.

Get in touch with the Franchise Tax Board to pay your taxes and understand more about franchise tax in California.

  • You can contact the Franchise Tax Board at 800-852-5711 or 916-845-6500 to pay franchise tax online, by mail, in person, or by credit card.

Leave a Comment