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Tag: Form 3522
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 […]
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 […]
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 §§ […]
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 […]
California Franchise Tax Explained: How LLCs & Corporations Are Taxed (2025 Edition)
Introduction Whether you’re running a small LLC or a growing corporation in California, you’ll likely owe franchise tax—a mandatory annual tax for doing business in the state. This guide simplifies how franchise tax works for LLCs, corporations, and S-corporations in 2025 (for the 2024 tax year). What Is the California Franchise Tax? Applicable Code: IRC […]