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

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. 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
    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 only be provided after consultation by an attorney licensed in your jurisdiction. The answer to question does not create an attorney-client relationship or otherwise require further consultation. Mr. Smith is licensed to practice law throughout the state of California with offices in Los Angeles County. He is authorized to handle IRS matters throughout the United States, and is also licensed to practice before the United States Tax Court. His phone number is 323-292-4116 or his email address is

  2. 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 analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also terms and conditions item 9, incorporated as if it was reprinted here.

  3. 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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