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Tag: First-Year Exemption
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. […]
California LLC $800 Franchise Tax 2025: Pay, Postpone, or Waive?
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 […]