Is the $800 minimum tax on corporations in California part of the income taxes owed or in addition to taxes owed?

Asked over 1 year ago - Los Angeles, CA

The state of California requires a minimum $800 tax per year per corporation. Is this payment in addition to the income tax a company would pay OR does it get subtracted from income taxes paid? So, if I owe $5,000 in income tax total would it just be $5,000 or $5,800? Thank you...

Attorney answers (3)

  1. Phillip Monroe Smith

    Contributor Level 18

    9

    Lawyers agree

    1

    Answered . The $800.00 fee is a franchise tax fee for the privilge of doing business in the state of California. It is not an income tax. The income tax is added to this fee.

    Good luck!
    Phillip M. Smith Jr.
    Los Angeles Tax & Business Attorney
    Licensed in the United States Tax Court
    www.culvercitytaxandbusinesslaw.com
    www.corporateattorney.com
    www.worlclasslawyers.com
    Main: 323-292-4116 ❘ Cell: 562-505-1004

    THESE COMMENTS ARE NOT LEGAL ADVICE. They are provided for informational purposes only. Actual legal advice can... more
  2. Michael Charles Doland

    Contributor Level 20

    6

    Lawyers agree

    1

    Answered . I agree with Mr. Smith. On your facts, the answer would be $5800.

    The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may... more
  3. Bruce Givner

    Contributor Level 18

    3

    Lawyers agree

    1

    Answered . The $800 franchise tax is a tax for the privilege of having the corporation. If the corporation makes a profit it will owe a tax on the profit. It has nothing to do with your personal income tax.

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