Annual Statements
Domestic corporations must file with the secretary of state within 90 days after filing the articles or incorporation. A statement of domestic stock corporation must be filed annually by the end of the calendar month during which the original articles of incorporation were filed. The cost is $20.
Income Tax Rate
California imposes a franchise tax on both California corporations and LLC (domestic) and non-California corporations and LLC (foreign) for the privilege of doing business in the state. The franchise tax is actually a tax of net income; the rate is 8.84% of net income for corporations. S corporations still must pay the franchise tax; the rate is 1.5% of net income.
California imposes a minimum franchise tax of $800. So, even if your corporation or LLC does not have net income, it still must pay this minimum tax. The minimum tax does not have to paid during the corporation’s first year; however, taxes based on income must be paid during this first year.
Cost of Incorporating in California
ONLY $59.00 + State Fees!
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