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Franchise Tax in CA

by ssarkinc, Window Shopper

  • Created: October 8, 2009, 3:30 pm
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3 comments

I have my corporation (S-Corp) registered in Delaware, we do business in Idaho and Texas. We file taxes in all the three states. The issue is I am shareholder in the company and I reside in California. California is demanding franchise tax from the company because I (one of the shareholder) live in california and I have check signing authority for the corporation. It is looking little wiered that just because of this I should be paying 800 per year to california. Has anyone faced this issue in the past and is there any way out of this.

 

Thanks

Tags: Discuss Popular Topics, Filing and Paying Taxes
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mrhelpful | Contributor | 6/24/2010 - 8:43 pm

Seems wrong to call it a tax....taxes a re generally based on a % basis this is more like a fee. Is there something comparable to this in Nevada?

SFOSarah | Performer | 3/10/2010 - 10:14 am

ALL California Corporations pay the $800 Franchise Tax - It is the annual fee to be incorporated in the state... And expect it to rise - Arnold needs to money...
Professional Web Site: http://onlinecorporatedocs.com/california-good-standing-certificate/

JamieD | Former Moderator | 10/13/2009 - 11:21 am

Hi ssarkinc - Sounds like you have a complex issue on your hands. The best advice you'll get will be from consulting a lawyer. You can also check out what small business assistance providers are located near you. Does anyone else in the community have any experience that may be of help?