California Business Portal

Taxes

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 los...

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What forms do S Corporations file?

S Corporation Forms: To report franchise or income tax, use Form 100S, California S Corporation Franchise or Income Tax R...

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Are S Corporations required to file estimated payments?

Yes, the Franchise Tax Board requires S Corporations to make estimated payments. The first estimate is due on the 15th day of the 4th month of the S Corporation's tax year. S Corporations Estimated Payments: ...

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Where do S Corporations make adjustments for state and federal law differences on Schedule K-1 (100S)?

S Corporations use column (c) of the Schedule K-1 (100S) to show the difference between state and federal tax law.

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Where do S Corporations nonresident shareholders get their California source income from their Schedule K-1 (100S)?

For nonresident shareholders, California source income is shown on Schedule K-1 (100S) column (e). Nonbusiness income is shown on table 1 of the Schedule K-1.

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What is the Franchise Tax Board's (FTB) Electronic Funds Transfer (EFT) program?

FTB's EFT program provides a faster, more efficient method of paying taxes for banks and corporations. EFT allows financial institutions to transfer money from your bank account to the state's bank account elec...

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What types of records should I keep for the Franchise Tax Board?

During business operations, you will come across many types of records related to your income and expense transactions. While it is impossible to list all records, the following are some examples of records to ...

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How long should I keep records for the Franchise Tax Board (FTB)?

FTB may request information regarding your California income tax return within the California statute of limitations period, which is usually the later of four years from the due date of the return or the date ...

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Why should I keep records for the Franchise Tax Board?

Good records will help you do the following: Determine whether you are making or losing money and why. Prepare your financial statements. Identify and categorize sources of revenue. Keep track of ...

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What is the "burden of proof" if I ever need to provide proof of income and deductions claimed on my tax return filed with the Franchise Tax Board?

The responsibility to prove entries, deductions, and statements made on your tax returns is known as the burden of proof. You must be able to prove (substantiate) certain elements of expenses to deduct them. Ge...

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