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Tag: Form 568
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 […]
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 […]
How to Claim California’s R&D Tax Credit for Businesses (2025 Edition)
Introduction California rewards businesses that invest in research and development with one of the most lucrative state tax credits available. If your company develops software, processes, or products, you may be eligible to reduce or eliminate your state tax liability using the R&D tax credit in 2025. What Is the California R&D Credit? Applicable Code: […]
California vs. Texas: Where Do Entrepreneurs Save More Money? (2025 Edition)
Introduction California and Texas are two of the biggest economies in the U.S., but they offer very different experiences for entrepreneurs. From income taxes to business regulations, where can you actually save more money in 2025 as a founder or small business owner? Tax Environment Overview: California vs. Texas Applicable Code: IRC §11, §162; CA […]
How to Start an LLC in California Without Paying Too Much in Taxes (2025 Edition)
Introduction Starting a Limited Liability Company (LLC) in California offers many benefits—but it also comes with one of the highest minimum taxes in the country. In 2025, California entrepreneurs must plan ahead to reduce their tax burden legally while remaining fully compliant with the Franchise Tax Board (FTB). Costs of Forming an LLC in California […]
California’s Franchise Tax: How to Reduce or Eliminate It (2025 Edition)
Introduction California imposes a minimum $800 franchise tax on most business entities—even if you make no income. In 2025, this tax continues to affect startups, holding companies, and out-of-state businesses operating in California. But with proper planning, you may be able to reduce or eliminate it legally. What Is the California Franchise Tax? Applicable Code: […]
California’s Corporate Tax vs. LLC Tax: What’s More Expensive? (2025 Edition)
Introduction If you’re launching or expanding a business in California in 2025, one of the most important decisions you’ll make is choosing between forming a corporation or a limited liability company (LLC). Both structures come with different tax costs, compliance rules, and long-term implications. This blog compares both structures from a California tax perspective to […]