And again, despite what the State of California does, ALL NET INCOME or NET LOSS from January 1st through December 31st is reported on Federal Tax Return, Form 1040, despite the differing timeline using July 7th as your end-end of the year closing date like December 31.
You are essentially not reporting any income or loss from the date of registration, which is why you would be exempt.
From the day you register on July 7th, that would be equivalent to January 1st and December 31st every year for the State of California to report income or expenses within that timeline.
Look at it like this... 2 sets of books with different closing periods.
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