C-Corporation Filing Questions

[dcroswell76]

Hello,

So last year (or 2023) was the first year that my company was in business.  I made no sales during that time (and I reported the operational expenses as losses).  I reviewed what the rules around taxes in the past, and I need to confirm what the tax structure would be for California (in other words, how much would I have been taxed if any for that first year)?  

Also moving forward, in terms of expectations around the tax structure (how much would I be expected to be taxed) would be helpful.

Thanks

[NateTheGrEAt]

A C-Corporation in California will pay both Federal and State tax on its net income. 

Federal tax on a C-Corp is generally a flat 21% tax rate. (21% of net income after expenses) Publication 542 (01/2024), Corporations | Internal Revenue Service (irs.gov)

California State tax on a C-Corp is generally a flat 8.84% tax rate. (8.84% of net income after expenses) C corporations | FTB.ca.gov

In addition, there is a minimum franchise tax of $800 per year for any C-Corporation. First year corporations are exempt. This fee is due regardless of whether you have a gain or loss or any revenue at all.  C corporations | FTB.ca.gov

I hope this is helpful!