California Franchise Tax

Tue, 6 February 2018 - Vanessa Kruze

Video: Does the California Franchise Tax Apply to Startups?

There are three really important things to keep in mind when you’re thinking about California Franchise Tax, so let’s go ahead and go over them.

The first of which is that California Franchise Tax is applicable to any company or any start-up that is doing business in California. So if you have employees, an office in California, or revenue in California, this probably applies to you.

The second thing to keep in mind is that California Franchise Tax is due on April 15th. You’re not going to get any sort of reminders in the mail or anything like that, so just mark your calendars, April 15th is when the California Franchise Tax is due.

The third thing that you’re going to want to keep in mind is how much to pay.

Now if you’re a start-up that’s operating at a loss, you’re probably just going to have to pay about $800. It’s not that expensive. If you are profitable, make sure you do work with your start-up CPA.

You might end up paying a little bit more than $800, but in general, just keep in mind you need to pay $800 on April 15th if you are a start-up operating in California.

Need an accountant for your startup? Kruze Consulting is a leading accounting firm working with seed and venture funded Delaware C-Corps. Kruze Consulting provides all things Accounting and Tax, including interim CFO Consulting, financial modeling, annual taxes, R&D tax credit studies, venture debt consulting, 409A reporting, bookkeeping. Contact Kruze today!


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