S corporations Business type

You should use the below guidelines to file your state income taxes:

• We tax every S corporation that has California source income 1.5%. Visit our tax rates table for complete list of tax rates
• Your minimum franchise tax ($800) is due the first quarter of each accounting period
  • You must pay the tax whether your corporation is active, inactive, operates at a loss, or files a return for a short period (less than 12 months)
  • We waive the minimum tax on newly formed or qualified S corporations filing an initial return for their first taxable year
  • We also waive the minimum tax if the S Corporations:
    • Did not conduct any business in California during the tax year, and
    • The taxable year was 15 days or fewer.
    • For information on estimated payments, visit business due dates

    Every corporation that is incorporated, registered, or doing business in California must pay the $800 minimum franchise tax.

    Withholding on California source income

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