BURBANK, Calif. — California businesses, including LLCs and corporations, must navigate a complex franchise tax regime. The state's tax structures impose fees that vary substantially based on organizational type and revenue.
Burbank, Calif.
—California Franchise Tax Guide for LLCs and Corporations
7 min read
Frequently Asked Questions
What is California's franchise tax rate for LLCs?
California imposes a minimum franchise tax of $800 on LLCs, regardless of income.
Are there additional taxes for corporations in California?
Yes, corporations must pay a franchise tax based on their net income, starting at 8%.
When are franchise tax returns due in California?
Franchise tax returns for both LLCs and corporations are typically due by the 15th day of the fourth month following the end of the tax year.
What is the consequence of not paying California's franchise tax?
Failure to pay the franchise tax can result in penalties and interest, as well as the suspension of the business's rights to operate in California.
Can LLCs be exempt from franchise tax in California?
Generally, LLCs cannot be exempt from the $800 minimum franchise tax, except for specific new entity rules.
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