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posted May 1, 2022 1:02:00 AM

California LLC electing to be taxed as a C Corp franchise tax

Hey all.  

 

Very confused by California's minimum franchise tax and C-Corp election and how this is handled by Turbo tax.  

 

I have a California LLC that has elected to be taxed as a C-Corp.  First year profitable in 2021.  Does Turbo tax automatically account for the minimum $800 franchise tax when calculating the total tax due, or is this a separate tax?  

 

I really can't figure out why this is not clearly documented with the state or with Turbo tax. 

 

TIA.

0 2 383
2 Replies
Level 15
May 1, 2022 8:36:11 AM

California LLCs don't pay $800 Franchise Tax [after 2021] - LLC University

LLC treated as a corporation | FTB.ca.gov

Level 13
May 1, 2022 12:29:51 PM

You need to provide additional information in order to provide further guidance:

  • When exactly was the LLC formed and registered with CA?
  • When did the LLC pay the $800?
  • How did you pay the $800?  Did you include the LLC EIN when paying?
  • When did the LLC begin business?
  • What is your question related to the $800 and the tax computation?
  • The $800 is a minimum CA franchise tax.  If the LLC tax computed is less than the $800, then you pay the $800.  If more, then the $800 paid is factored into what the LLC actually owes.
  • Additionally, keep in mind that there are two components of the CA form 100; the franchise and income tax.  The $800 relates to the franchise component.
  • Since the LLC elected to be taxed as a C corporation, you need to be filing the CA form 100.