And as I expected, this was for California.
The State of California considers LLC members to incur a minimum Franchise Tax on any income they earn, but exempt in their 1st year.
California is a State and most State would consider or label this as a Filing Fee, normally based on Gross Receipts.
Your initial question never stated it was for a State and not the Federal government, but I guessed that was where the concern is.
You would be exempt in not paying that tax in your 1st year of business, ONLY IN, the State of California.
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