California Business Portal

If my actual tax is less than the minimum franchise tax, then what figure do I put on my business entity's tax return?

You must enter the minimum franchise tax amount on the form.

Minimum franchise tax is the amount you must pay the first quarter of each accounting period whether the corporation is active, operates at a loss or does not do business. The current minimum franchise tax is $800. For new corporations that qualify or incorporate, the minimum franchise tax is $0.00 for the first tax year, but is measured based on income for the year and is subject to estimate requirements. For subsequent years, the minimum franchise tax is $800.

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