Overview


The California Franchise Tax Board sets the annual rate payable by LLCs, S corporations, C corporations, LPs and LLPs. For new businesses, the minimum due is $800 per year. There is exemption for the first year of operation for certain businesses.

Businesses registered in California need to pay the California Franchise Tax Board directly.


Who needs to pay Franchise Taxes in California?

All LLCs, S corporations, C corporations, LPs and LLPs registered in California need to pay franchise tax.


How are Franchise Taxes calculated in California?

The franchise tax rate is either $800 or the net income multiplied by the corporate tax rate (whichever is more).


How often do businesses need to pay Franchise Tax calculated in California?

Franchise taxes in California needs to be paid annually. There is an exemption for the first year of operation for certain businesses.


When is the due date to pay Franchise Tax calculated in California?

Franchise taxes must be paid by the end of the first quarter of each accounting period.