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Tag: Voucher 3893
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 §§ […]
PTET Cash-Flow Hacks for AI Founders With Investor K-1s (2025)
Statutory Frame Law: Cal. Rev. & Tax. Code §§ 19900–19906 (AB 150, as amended by SB 113). Rate: Flat 9.3 % on each consenting owner’s California-source income. Election Window: Tax years 2021-2025; sunsets before 1-1-2026. Owner Limits: Credit flows only to individuals, trusts, estates, and SMLLCs owned by them. Funds taxed as partnerships cannot claim […]