Get Form 3716

File the appropriate dissolution, surrender, or cancellation SOS form(s) within 12 months of filing your final tax return. Currently, LLCs can submit termination forms online. Online submission for Corporation and Partnership dissolution/cancellation forms is not available at this time.

Tax-Exempt Status. Aside from the above three exemptions, the only legitimate way to avoid paying the $800 franchise tax is to run a sole proprietorship, as they are not subject to the tax.

Business Know-How To encourage business growth, the California legislature has waived formation fees for domestic and foreign LLCs, corporations, and limited partnerships. That means it's a great time to launch your California dream business.

California law generally imposes a minimum franchise tax of $800 on every corporation incorporated, qualified to transact business, or doing business in California. A corporation that incorporates or qualifies to do business in California is exempt from paying the minimum franchise tax in its first taxable year.

Every LLC that is doing business or organized in California must pay an annual tax of $800. This yearly tax will be due, even if you are not conducting business, until you cancel your LLC. You have until the 15th day of the 4th month from the date you file with the SOS to pay your first-year annual tax.

Under the involuntary (FTB initiated) dissolution process, we may initiate an administrative dissolution of a domestic corporation or administrative cancelation of a domestic limited liability company (LLC) if the following requirements are met, the entity has: Been suspended by FTB for 60 or more consecutive months.

California Franchise Tax is the annual tax for conducting business in California. For noncorporate entities, it is a flat fee of $800. For corporate entities, the fee is a minimum of $800. Failure to pay the franchise tax will result in a minimum penalty of 5% and a maximum penalty of 25% of the unpaid tax.