Corporations in California pay an annual franchise fee of $800 for the
privilege of doing business in the State. However, associations that are nonprofit mutual-benefit corporations qualify for an exemption from that annual fee under Revenue & Tax Code §23701t
if they file for the exemption. A list of tax-exempt organizations
can be found on the Franchise Tax Board's website.
In some instances, the exemption may be retroactive, resulting in a
refund of prior payments. If taxable income is less than $100, a
California corporate return is not necessary.
: Associations needing legal assistance can contact us
To stay current with issues affecting community associations, subscribe to the Davis-Stirling Newsletter