Posts Tagged ‘minimum franchise tax’
Ownership of Passive LLC Interest in Manager-Managed LLC Not “Doing Business” in California
The following is the text of an e-bulletin that I authored and that was published by the Corporations Committee of the Business Law Section of the State Bar of California. In Swart Enterprises, Inc. v. Franchise Tax Board (Jan. 12, 2017), a California court of appeal held that an out-of-state corporation whose sole connection with…
Read MoreLLC Annual Fee Clarified by Franchise Tax Board
A limited liability company (“LLC”) doing business in California (whether organized under California law or the law of another state) must pay an LLC annual fee on its “total income from all sources derived from or attributable to this state.” (The annual LLC fee is really a tax, but the legislature didn’t want to call it…
Read MoreHere’s One Way Not to Pay Taxes – Legally!
California charges a minimum franchise tax of $800 each year. This is a tax on the privilege of being a corporation. It doesn’t matter whether the corporation is profitable or even if it has any revenue. The state wants its $800 from every corporation every year, and if it’s not paid, the state will suspend…
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