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Category: Tax
Our Tax Experts lets you minimize and manage your tax liabilities considering critical tax factors to plan your taxation and guide you to reduce taxes.
Our Tax Experts lets you minimize and manage your tax liabilities considering critical tax factors to plan your taxation and guide you to reduce taxes.
ACH vs. Credit Card: Cheapest Way to Pay the CA FTB
Paying your California Franchise Tax Board (FTB) balance comes with options, but not all are cost-effective. Should you pay by ACH (bank debit) or credit card? This blog compares both methods for the 2025 tax year so you can avoid hidden fees and make the smartest choice for your business or personal tax obligations. Payment […]
How to E-Pay the CA $800 LLC Tax on the FTB Portal
Every California LLC is required to pay the $800 annual franchise tax to the Franchise Tax Board (FTB). The easiest and most secure method is online payment through the official FTB Web Pay portal. This blog walks you through the exact steps to make your 2025 payment without any errors. Who Needs to Pay the […]
2025 California Franchise Tax Due Dates (LLCs, Corps, LPs)
Every business entity operating in California, whether it’s a Limited Liability Company (LLC), Corporation, or Limited Partnership (LP), must track and comply with the Franchise Tax Board (FTB) deadlines. Missing a due date can trigger penalties, interest, or even suspension. Here’s your official 2025 due date calendar for all major California entity types. Who Must […]
California Statement of Information (LLC-12) Deadline Cheat Sheet
Every California LLC must file a Statement of Information (Form LLC-12) to remain in good standing. Missing this simple yet mandatory filing can trigger penalties, late fees, or even suspension by the Secretary of State. This blog offers a complete 2025 cheat sheet to help you stay compliant. What Is the California LLC-12 Form? The […]
Can You Run a Series LLC Inside California?
California does not permit the formation of Series LLCs within the state. However, foreign Series LLCs, those formed in other states, can register and operate in California. Despite this allowance, each series within the LLC is treated as a separate entity for tax purposes, leading to potential complexities and increased costs. What Is a Series […]
Delaware Series LLC? Why California Charges a “Doing Business” Fee Anyway (2025)
Why Your Delaware Series LLC Still Owes California Money State Nexus Rule. California imposes its annual $800 franchise tax on every entity “doing business” in the state or registered with the Secretary of State—no matter where it was created (R&TC § 17941, § 23101). Series Treated Separately. The Franchise Tax Board (FTB) treats each protected […]
Paying the CA PTET Voucher: Exact Form 3893 Walk-Through for 2025
Legal & Technical Authority State Law: California Revenue & Taxation Code §§ 19900-19906 (AB 150, SB 113) require two pass-through entity elective tax (PTET) payments—one during the tax year and one with the return. Federal Context: PTET shifts the state tax to entity level, making it deductible under IRC § 162 and sidestepping the SALT […]
S-Corp vs. LLC in California — Franchise Tax and PTET Compared for 2025
Statutory Snapshot LLC: California Revenue & Taxation Code (R&TC) §§ 17941 ($800 annual tax) and 17942 (gross-receipts fee). Federal entity classification follows IRC § 7701 and Reg. § 301.7701-3. S-Corp: R&TC § 23802 imposes a 1.5 percent tax on net income (minimum $800). Federal rules are in IRC §§ 1361–1362. PTET (either entity): R&TC §§ […]
C-Corp Flat 8.84 % Tax: Still Worth It for Venture-Backed AI Start-Ups in 2025?
Statutory Authority & Basics Law. California taxes C-corporations at a flat 8.84 percent on net income (10.84 percent for banks/financials) under R&TC § 23151, applied on Form 100. Minimum Franchise Tax. Every C-corp also owes $800 each year, due with the first quarter estimate—even if inactive or loss-making. Federal Overlay. C-corps pay IRC § 11 […]
Alternative Minimum Tax (AMT) on California C-Corps Explained for 2025
Legal Foundation Statute: California Revenue & Taxation Code (R&TC) § 23455 adopts the federal AMT regime (IRC § 55) with state-specific rates and adjustments. Rate: 6.65 percent of California alternative minimum taxable income (AMTI) after the state exemption; 8.65 percent for banks and financial corporations. Exemption: First $40,000 of AMTI is exempt; the exemption is […]