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Tag: Franchise Tax Board
Paying the CA PTET Voucher: Exact Form 3893 Walk-Through for 2025
Legal & Technical Authority State Law: California Revenue & Taxation Code §§ 19900-19906 (AB 150, SB 113) require two pass-through entity elective tax (PTET) payments—one during the tax year and one with the return. Federal Context: PTET shifts the state tax to entity level, making it deductible under IRC § 162 and sidestepping the SALT […]
C-Corp Flat 8.84 % Tax: Still Worth It for Venture-Backed AI Start-Ups in 2025?
Statutory Authority & Basics Law. California taxes C-corporations at a flat 8.84 percent on net income (10.84 percent for banks/financials) under R&TC § 23151, applied on Form 100. Minimum Franchise Tax. Every C-corp also owes $800 each year, due with the first quarter estimate—even if inactive or loss-making. Federal Overlay. C-corps pay IRC § 11 […]
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 […]
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: […]
How to Avoid California’s High State Taxes Legally (2025 Edition)
Introduction California is one of the highest-taxed states in the U.S.—with income tax rates reaching up to 13.3%. But there are legal ways to reduce your exposure, claim available credits, and structure your income or business more efficiently. This guide outlines exactly how to avoid California’s high state taxes—legally in 2025. Why California Taxes Are […]