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Tag: Gross Receipts Fee
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 […]
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. […]