Privacy, Business and Law

The Franchise Tax Board requires that all corporations pay an annual tax, or fee, for the privilege of doing business in the State of California. If a corporation is incorporated in another state but is required to be legally qualified to transact business here, then it must pay a similar fee, even if it is a Subchapter S corporation or is incorporated in a state that has no corporate income tax. Other business entities such as limited partnerships and limited liability companies also pay such a fee.