California Minimum Franchise Tax for S Corporations
Desktop · Written guide Content date 1 min read
The annual tax for S corporations in California is the greater of 1.5% of the corporation's net income or $800. Newly incorporated or qualified corporations are exempt from the annual minimum franchise tax on their initial tax return.
If an S corporation has $0 income, or incurred a loss, the required minimum franchise tax of $800 will be calculated.
To designate the California S corporation return (Form 100S) as the first year return, from the CA Main Menu select:
- Heading Information
- Additional Information
- First Year Filer? - Change to YES.
Additional Information: