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Tag: CA Franchise Tax
California Carbon Capture Credits: Tax Benefits for Startups
As California moves aggressively toward net-zero emissions, it’s offering new carbon capture tax credits to incentivize innovation in climate tech, AI-powered emission tracking, and carbon removal. These credits are modeled partly after IRC §45Q (Federal Carbon Capture Credit), but offer additional state-level tax relief for companies based in California. If you’re involved in carbon sequestration, […]
Stock-for-Stock Reorgs: California Franchise Tax Surprises
When your startup undergoes a stock-for-stock reorganization, the focus is usually on federal tax deferral under IRC §368(a)(1)(B) but if your company operates in California, the Franchise Tax Board (FTB) may have a different take. Many founders, CFOs, and legal teams overlook the state-level tax implications of stock swaps, especially when: Entities involved are incorporated […]
Grantor Trusts & CA Startup Shares: Avoid These Tax Traps
If you’re using a grantor trust to hold startup equity a common strategy among founders for estate and tax planning there’s a good chance you’ve heard about the federal tax benefits. But if you’re in California, you also need to think about the Franchise Tax Board (FTB) because California may not treat that trust the […]
California R&D Credit vs. Federal: Can Founders Double-Dip?
Introduction Founders often ask: “Can I claim the R&D credit at both federal and California levels?” In 2025, the answer is yes but with key differences in calculation, rules, and refundability. In this blog, we compare the California Research Credit with the Federal R&D Credit under IRC §41 and guide founders on how to maximize […]
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 […]
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 […]
First-Year Exemption: Can Your 2025 CA Startup Skip the $800 Fee?
Franchise-Tax Statute & Prior Relief Code Base. California Revenue & Taxation Code (R&TC) §§ 17941 & 17946 impose an $800 “annual LLC tax” on every LLC formed or “doing business” in the state, regardless of profit. Temporary Holiday (AB 85). LLCs formed Jan 1 2021 – Dec 31 2023 enjoyed a first-year waiver under A.B. […]