Ready. Set. Incorporate! https://www.readysetincorporate.com/faq-items/i-keep-hearing-about-having-to-pay-800-to-the-california-franchise-tax-board-every-year-just-because-i-formed-an-s-corporation-or-an-llc-true/ Export date: Thu May 9 6:32:31 2024 / +0000 GMT |
I keep hearing about having to pay $800 to the California Franchise Tax Board every year just because I formed an S Corporation or an LLC. True?Not only is it true . . . it's worse than you think. When it comes to LLCs [link to what is an LLC], the FTB collects a tax (the FTB calls it a [ahem] "fee") above the $800 if the LLC's revenues meet or exceed $250,000. Here's a link 1 to the graduated fee scale. The fee is capped at $11,790 when revenues meet or exceed $5,000,000. You should be so lucky, right? For S corporations 2, the news isn't much better. Click here 3. Here's the short version: California collects 1.5% of an S corporation's net income. Ultimately, this state-level tax becomes one of many considerations when you're thinking about an entity for your business. Pencil it out.
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Post date: 2022-12-14 15:08:18 Post date GMT: 2022-12-14 23:08:18 Post modified date: 2022-12-14 15:08:18 Post modified date GMT: 2022-12-14 23:08:18 |
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