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Tag: FTB filing
Stock-for-Stock Reorgs: California Franchise Tax Surprises
When your startup undergoes a stock-for-stock reorganization, the focus is usually on federal tax deferral under IRC §368(a)(1)(B) but if your company operates in California, the Franchise Tax Board (FTB) may have a different take. Many founders, CFOs, and legal teams overlook the state-level tax implications of stock swaps, especially when: Entities involved are incorporated […]
California Alternative LLC Structures: B-Corp & Social-Purpose Corp Taxes
Introduction In 2025, California offers more than traditional LLCs and C-Corps. Alternative legal structures like Benefit Corporations (B-Corps) and Social Purpose Corporations (SPCs) provide mission-driven businesses with the flexibility to pursue impact and profit. But what about taxes? This guide breaks down the Franchise Tax Board (FTB) treatment of B-Corps and SPCs in California, comparing […]