California Franchise Tax Information
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Payment Methods:
The $800 LLC franchise tax can be paid via mail, online from a bank account, or by credit card. -
Annual Franchise Tax:
All LLCs in California must file Form 3522 and pay the $800 Annual Franchise Tax every year, regardless of revenue or activity. The tax is due annually by April 15th. -
Paying the Franchise Tax:
You may pay the tax online, by mail, or in person at the California Franchise Tax Board Field Offices. Make your payment payable to Franchise Tax Board. -
Minimum Franchise Tax:
The $800 minimum franchise tax is mandatory for corporations operating in California, either a percentage of income or $800, whichever is larger. -
S Corporation Taxation:
S Corporations in California must pay either $800 or the net income multiplied by the applicable tax rate. The tax rate for corporations varies. -
Tax Deductibility:
The $800 franchise fee is not deductible on the LLC’s California tax return. However, California’s LLC annual fee is tax-deductible for federal taxes. -
C-Corporation Tax:
C-Corporations pay a minimum tax of $800 per year, waived for the first year, and an additional flat tax rate of 8.84% applies. -
Filing Requirements:
An LLC is required to pay the $800 annual tax and file a California tax return until the necessary paperwork is submitted to cancel the LLC. -
Registration:
There is no state-level registration requirement for sole proprietorships in Indiana. However, business registration may be necessary at the local level. -
Payment Schedule:
The $800 California Franchise Tax must be paid within the first four months of forming the LLC and then annually by April 15th.