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Statutory Authority & Who Pays California imposes a gross-receipts (“LLC”) fee—separate from the $800 franchise tax—under R&TC § 17942. Any LLC “doing business” or registered in California must pay the fee if its total California income (apportioned or sourced) meets the thresholds below, regardless of profit or loss. Federal entity classification under IRC § 7701 […]
Franchise Tax Basics & Legal Authority Statute. California Revenue & Taxation Code §§ 17941 & 17946 require every LLC “doing business” in the state to pay an $800 annual franchise tax. Federal tie-in. LLCs are classified under IRC §7701 & Reg. §301.7701-3; California respects that classification but imposes its own minimum tax regardless of […]