California Business Portal

Is an S Corporation subject to the minimum franchise tax?

Yes, S Corporations are subject to the minimum franchise tax. Minimum franchise tax is the amount you must pay by 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 tax is measured based on their annual income and is subject to estimate requirements. For subsequent years, the minimum franchise tax is $800.

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