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Tag: Form 3536
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 […]
LLC Gross-Receipts Fee Tiers: How Much Will Your SaaS Pay in 2025?
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 […]
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 […]