What is franchise tax fee in California?
The California franchise tax fee is an annual tax paid by state-registered business entities and foreign business entities doing business in the state. It’s a tax on the privilege of doing business in California and applies to most types of business entities.
Do you have to pay the $800 California LLC fee every year?
LLCs registered in or doing business in California must pay the California Franchise Tax of $800. Additionally, LLCs making more than $250,000 in a year are also subject to an additional LLC fee, one that increases based on your LLC’s income.
Do you have to pay the $800 California corporation fee the first year?
Yes, C corporations registered in California are required to pay the $800 California corporation fee for their first taxable year. The fee must be paid within the first 15 days of the fourth month after the corporation is formed, regardless of whether the corporation has started conducting business or not.