California Business Portal

Taxes

What circumstances generally require filing a short-period tax return?

What circumstances generally require filing a short-period tax return? The circumstances for filing a California “short-period” tax return are when: A federal return for a period of less than 12 months i...

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When is a short-period tax return due?

When is a short-period tax return due? California has a paperless extension that allows late filing for most business entities, except limited liability companies. Tax is generally due on either the 15th day o...

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Is it true a corporation does not pay tax the first year?

Is it true a corporation does not pay tax the first year? No, there is a misunderstanding that all corporations doing business in California are not subject to tax in their first tax year. Newly incorporated o...

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Are there times when a corporation is still required to pay the minimum franchise tax in its first year of doing business in California?

Are there times when a corporation is still required to pay the minimum franchise tax in its first year of doing business in California? Yes, there are situations where corporations that incorporate, qualify, ...

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Are limited liability companies (LLCs) required to pay annual tax in their first year of doing business in California?

Are limited liability companies (LLCs) required to pay annual tax in their first year of doing business in California? Yes, newly-formed LLCs pay the $800 annual tax payment due on the 15th day of the 4th mont...

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Can I terminate (cancel/dissolve/surrender) a business entity by indicating on the tax return "Final Tax Return"?

Can I terminate (cancel/dissolve/surrender) a business entity by indicating on the tax return "Final Tax Return"? To revive your suspended or forfeited business entity, or to request a Franchise Tax Board Limi...

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California's 15-Day Rule—What is it?

California's 15-Day Rule—What is it? The 15-Day rule applies to a short-tax year of 15 days or less.

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Can I be held personally responsible for my business tax debt?

Can I be held personally responsible for my business tax debt? Yes, you may be held personally responsible for your business' tax debt. For instance, sometimes business officers receive excessive funds or othe...

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Why was my business entity suspended or forfeited?

Why was my business entity suspended or forfeited? The Franchise Tax Board suspends businesses for at least one of the following reasons: Failure to file one or more tax returns. Failure to pay the bus...

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What are the effects if my business entity is suspended or forfeited?

What are the effects if my business entity is suspended or forfeited? Suspension or forfeitures are public information and affect a business in many ways, the business: Loses its rights, powers, and priv...

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