California Franchise Tax
California's annual tax on the privilege of doing business in the state. Every entity (LLC, S-Corp, C-Corp) pays a minimum of $800 per year — regardless of profit or activity — for as long as it exists. S-Corps owe an additional 1.5% of net income (minimum $800). C-Corps owe 8.84% of net income. LLCs also owe a separate gross receipts fee ($900–$11,790) on top of the $800 minimum. The franchise tax is the single most expensive 'cost of existing' for California entities.
Where This Matters
Choosing and setting up the right business structure — LLC, S-Corp, C-Corp, partnership — with California-specific tax implications and long-term planning.
Legal strategies to reduce business and personal tax burden — entity optimization, deferred compensation, retirement planning, California-specific tactics.
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